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State  of  Tennessee,   Prison  operations 

From  December 1,  1898  to  December  1, 
1900 


THE  LIBRARY 

OF 

THE  UNIVERSITY 

OF  CALIFORNIA 

LOS  ANGELES 


STATE  OF  TENNESSEE. 


PRISON  OPERATIONS 


FROM 


DECEMBER  i,  1898  TO  DECEMBER  1,  1900. 


RKPOKT    OF 

J.   W.    ALLEN, 

AUDITING   ACCOUNTANT, 


TO 

HON.  BENTON  McMILUN, 

GOVERNOR. 


1  )\TK,   JAM'ARV   2.|. 


Published  1>\  authority  late  Joint  Resolution  No. 


■    Puhi.ishim;  1  0 

1 1  \-  u  1  1 


STATE  OF  TENNESSEE. 


PRISON  OPERATIONS 


FROM 


DECEMBER  i,  1898  TO  DECEMBER  i,  1900. 


REPORT    OF 

J.  W.   ALLEN, 

AUDITING  ACCOUNTANT, 


TO 

HON.  BENTON  McMILLIN, 

GOVERNOR. 


DATE,  January  24,  1901. 


Published  bj  authority  of  .Senate  Joint  Resolution  No.  — . 


<  .cisi'i.i.  \  ii\  mi  \  1 1    Publish i\<.  Co. 

vasiivm.i.i 


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REPORT. 


X ash vi Li. k,  Tenn.,  January  24,  1901, 

Hon.  Benton  McMillm,  Governor,  Nashville,  Tenn. 

Dear  Sir:  Having  been  appointed  on  November  27, 
1900,  to  investigate  and  audit  the  books  and  accounts  of 
the  State  Prison,  f roan  December  1,  1898,  to  December  1, 
11)00,  I  make  the  following  report: 

Cross  earnings,  two  years $748,92S  30 

Expenses  of  operations,  two  years 506,939  88 

i—  .Net  earnings,  two  years  $241,988  42 

>-       December  1,  1898,  to  December  I,  1899: 
85 

Gross  earnings   $313,709  69 

Expenses  of  operations  220,382  00 

—j  

Net  earnings   $  87,327  69 


December  1,  1899,  to  December  1,  1900: 


m  Gross  (  arnings   $435,218  61 

>  Expenses  of  operations 280,557  88 

o 

Net  earnings   $154,660  73 

.MAIN  PRISON. 

O  Cross  earn  in  us,  h\o  years   $278,817   08 

Expenses  of  operations,  two  years 215,133   L9 

Net  earnings,  two  ,\  cars  $  33,383  39 

uj 

2      December  l,  1898,  to  December  l,  L899: 

_»         Gross  (  arnings  $129,684    13 

bxpenses  of  operal ions  111,700   lo 

Net  earnings  $  17,984  03 

I  j  i  eember  i,  L899,  to  December  l.  L900: 

Gro  9  earnings  $119,132  65 

Expenses  of  operations  133,732  79 

N.t  earnings  15,399  86 

448926 


_4  — 

BRUSHY  MOUNTAIN. 

Gross  earnings,  t  wo  years  $470,111  22 

Expenses  of  operations 261,506  69 

Vet  earnings   $208,604  53 

December  I,  1898,  to  December  I,  1899: 

Gross  earnings   $184,025  26 

KxpcnseS  of  operations 114,681  60 

Net    enmings    $  69,343  66 

December  1,  1899,  to  December  1,  1900: 

Gross  earnings   $286,085  96 

Expenses  of  operations 146,825  09 

Net  earnings  $139,260  87 

The  foregoing'  is  a  general  summary  of  the  results  of  my 
investigation,  a  detailed  statement  of  which,  by  months, 
amounts,  and  accounts,  in  tabulated  form,  numbered  nu- 
merically as  to  the  Main  Prison,  and  alphabetically  as  to 
Brushy  Mountain,  is  hereto  attached  and  made  a  part  of 
this  report. 

MAIN  PRISON. 

Statement  1.  This  statement  shows  total  disbursements, 
gross  and  net  earnings,  by  amounts  and  accounts,  from  De- 
cember 1,  1898,  to  December  1,  1900. 

Gross  earnings   $278,817  08 

Expenses  of  operations 245,4:;:;   19 

Nei  earnings,  two  years  $  :;:'>,;ss:;  89 

Vouchers  issued  by  the  Prison  Commissioners  are  sight 

drafts  upon  the  State  Treasury;  therefore  they  constitute 

the:  expenditures  of  the  State  Prison.     From  December  1, 

1.898,  to  December  1,  1900,  vouchers  have  been  issued  as 

follows1: 

Red   vouchers $2.:0.161  54 

While   vouchers 15,271   65 


Total $245,433   19 


—  5  — 

December  1.  1898,  10  December  1,  1899s 

Red  vouchers $10:>.ti7^  :.'; 

White  vouchers 6,022   18 

Total $1 11,700  40 

December  l.  J899,  to  December  l.  1900: 

Red  vouchers $124,483  27 

White  vouchers <),24(.»  52 

Total $133,732   79 


These  amounts  constitute  the  expenditures  of  the  Main 
Prison  given  in  this  statement.  White  vouchers  arc  ge  i 
erally  issued  on  account  of  moneys  expended  and  charged 
to  the  Building  Fund  ;  but  the  records  and  books  show  that 
this  fund  was  not  only  exhausted  on  December  1,  1898, 
hut  that  the  account  had  been  overdrawn  at  that  date  in  the 
sum  of  $7,8(55.80,  the  details  of  which  are  given  in  an- 
other statement  in  this  report.  Th  prison  was  completed, 
and  tin-  Legislature,  at  its  extra  session  in  L898,  appro- 
priated $25,000.00  for  the  completion  of  the  factory  build- 
ings. This  being  done,  all  expenses  incident  to  the  proper 
keeping  thereof,  including  all  cost  of  new  or  additional 
machinery,  improvement,  equipment,  or  construction  ren- 
dered necessary  by  the  wear  and  tear  of  the  old  oi  by  the 
increase  ot  business,  constitute  a  charge  against  the  gross 
earnings  and  should  be  paid  therefrom.  This  is  the  prac- 
tice of  all  large  corporate  enterprises,  and  no  other  prac- 
tice  has  heretofore  been  known  in  correct  bookkeeping. 

The  gross  earnings  of  convict  labor  in  this  statement  is 
the  net  amount  charged  to  contractors  after  deducting  any 
credits  or  rebates  that  may  haive  Keen  given  by  tin  Prison 
Commissioners.  There  was  do  charge  made  against  Pee- 
bles &  Cockril]  and  Taut  lor  the  labor  received  by  them. 
Inn  wa-  discovered  in  checking  up  the  Time  Register. 
The  earnings  from  the  sale  of  old  prison  material  is  aim 
ply  the  amount  of  the  cost  of  convict  labor  engaged  there 
in  getting  out  the  -tone  to  reimburse  the  prison  manage- 
ment.     The  earnings  from  the  I'nited  States  Government 


—  6  — 

is  an  extra,  earning  of  25  cents  per  day  paid  for  the  hoard 
of  its  prisoners.  Other  miscellaneous  earnings  are  the 
cash  receipts  from  the  sources  indicated.  The  net  credit 
or  earning  on  "Acounts  Receivable,"  etc.,  is  credited  to  the 
earnings,  of  NWember,  1900,  and  should  also  he  applied 
to  the  credit  of  convict  labor.  It  is  arrived  at  in  the  fol- 
lowing manner: 

Accounts  Payable,  December  1.  11)00 $16,220  88 

Less  Accounts  Payable,  December  1,  1898....      12,151   '.hi 

.Net  addition  to  expenditures $  4.068  98 

Accounts  Receivable,  December  1.  1000,  man- 
ufacturing department    $  1,119  03 

Accounts  Receivable,  December  1.  1900,  farm 

(including-  car  of  wheat  in  transit)   1,969  04 

9,213  i-:;   bushels  of  wheat   in   warehouse,  at 

TO  een  ts    c.,449  36 

1'iiited  States  Government,  cash  and  trans- 
portation  advanced    847   59 

Total  gross  credits $10,385  02 

Less  Accounts  Receivable,  December  1,  1898, 

manufacturing  department  $      584  96 

Less  Accounts   Receivable,  December  1.  1898, 

farm  1.049  77 

Total  deductions $  1,634   i.'i 

Net  credit,  to  earnings $  8,750  29 

Net     additions     to     expenditures     as     above 

given,  or  charge  vs.  earnings 1,068  98 

Net  earnings $  4,681  31 

The  warehouse  receipts  show  that  4,354  10-60  hushels 
of  this  wheat  were  deposited  in  the  warehouse  of  the  Lib- 
erty Mills  on  September  6,  L900,  and  that  4,859  10-nf) 
bushels  were  deposited  in  the  warehouse  of  the  Tennessee 
Milling  Company  on  August  27,  1900. 

\'o  further  credits  are  allowed  for  "  Supplies  on  Hand," 
from  the  fact  that  the  amounts  on  hand  in  the  regular  run 
of  business  from  month  to  month  or  from  year  to  Near  are 
generally  offset  by  the  other,  and  this  is  especially  trus 
where  the;  situation  is  in   such  proximity  to  market,  and 


—  7  — 

where  it  is  not  essential  to  purchase  in  largsp  quantities  or 
mare  than  is  Qeccessary  for  one  month's  consumption. 

The  net  earnings  given  in  this  statement  are  derived  as 
follows : 

EARNINGS  FROM  CONVICT  LABOR. 


Foundry  

Tennessee  Harness  Company  .. 

Houston  <fe  Leggett   

N.,  C.  &  St.  L.  Ry.  Co 

Peebles  &  Cockrill  

Wes1  Nashville  Land  Company 

Tarot 

linnan    

Accounts  Receivable,  etc 


Id 

7,026 

u\ 

0 

94 

59 

21 

64 

16 

02 

97 

5,755 

62 

4,68] 

31 

Total  earnings   $26,890  33 

LOSS  FROM  CONVICT  LABOR. 

I'  .-    factorj   $  1,301   09 

Chair  and  Carriage  Company 3,832  58 

Fizer  &  Co 713  65 

R,  A.  Foster  32  00 

Hosiery  Companj    10,981  97 

Shoe   Company 5,291    .V> 

Tola'    loss    $22,202  81 


Xcl  earnings  from  convict  labor $  4,687  49 

Board  United  States  prisoners 19,924  75 

Ren1   1,076  39 

R<  nl  of  bricli  plant   5,300  00 

Royalty      ii  brick 1.065  53 

Gate   re  «ipts   L307  63 

Gat*  receipts,  old  prison   22  10 

Total  nel  earnings  as  per  statement $33,383  89 

Statement  '.  This  statemenl  shows  total  convicts  main- 
tained and  worked,  average  per  workiug  day  of  each,  total 

■  of  operations,  gros?  and  uel  earnings,  and  loss,  by 
months,  al  Vain  Prison,  from  Dec  mber  1,  1898,  to  De- 
cember 1.  1900. 

Ii!  .  mi  r,    i.  1898,  i  »  Deci  mber  l.  is<.>9: 

Total  gross  earnings   $129,684    t3 

Total  expenses  of  operations 11 1,700   10 

Ne\  earnings $   17.984  03 


—  8  — 

Average  Dumber  of  convicts  in  prison  each  work- 
ing day  1000 

Average   number  of  convicts   working  each   work- 
ing ( I  :u    8.">S 

Average  gross  earnings  ]>er  day  for  each  worker. . .  48 

Average  cost  per  day  for  each  worker 41 

Average  net  earnings  per  day  for  each  worker 07 

Average  gross  earnings  per  day  for  Those  working 

on  contracts    .4584S 

Avei'age  cost   per  day   for  those  working  on   con- 
tracts    .42298 

Net  earnings  per  day  by  those  working  on  con- 
tracts    .03550 

December  1,  1899,  to  December  1,  1900: 

Total  gross  earnings    $149,132  05 

Total  expenses  of  operations 133,732  7'.t 

Total  net  earnings $  15,399  86 

Average  number  of  convicts  in  prison  each   work- 
ing day 1034 

Average   number   of   convicts   working"  each    work- 
ing day  890 

Average  gross  earnings  per  day  for  each  worker. . .  51 

Average  cost  per  day  for  each  worker 45 

Average  net  earnings  per  day  for  each  worker 0(5 

Average   gross  earnings   per   day   for  each   worker 
on     contracts,     including     Accounts     Receivable 

credit  .48200 

Average  cost  per  day  for  each  worker  on  contracts  .50580 

Average  loss  per  day  for  each  worker  on  contracts  .0238 

Statement  S.  This  statement  shows  red  vouchers  issued 
ai  Main  Prison,  by  months,  amounts,  and  accounts,  from 
Deeembei  1,  L898,  to  December  1,  1900,  each  year  sepa- 
rately. 

Statement  .'/.  This  statement  shows  white  vouchers  is- 
sued at  Mahi  Prison,  by  months,  amounts,  and  accounts. 
from   December  1.  1893,  to  December  1.   1000,  each  .year 

sepa  lately. 

December  I.  1898,  to  December  1,  1899: 

Red  vouchers  $105,678  27 

White  vouchers    6  022    13 

Total  vouchers  issued    $111,700  -JO 


—  9  — 

December  1.  1899,  to  December  1.  L900: 

Red  vouethei  s  $124,483  21 

White  vouchers  9.-49  •'>-' 

Total  vouchers  issued  $133,733  TiT 

Total'  vouchers  issued,  two.  yeaus $345,433   19 

These  statements  cheek  up  with  the  books,  with  the  ex 
oeption  of  a  few  errors  amounting  in  the  aggregate  to  about 
$90.00  (which  have  all  been  corrected  ),  and  constitute  the 
expenditures  of  the  Main  Prison. 

ShifniK'itls  ■'>  and  <>■  These  statements  show  total  cost 
r.  maintain  and  operate,  gross  and  net  earnings  on  convict 
Labor  at  .Main  Prison  from  December  1,  1898,  to  Decem- 
ber 1.  1900,  giving  each  contractor  and  each  year  sepa- 
rately. 

I'.ri'nilicr  1,  1898,  lo  December  I,  L899: 

Gross  earnings  all  contractors,  convict  labor $108,478  09 

Expenses  of  operations  99,760  64 

Net  earnings    $     8,717  45 

Total  gain   $    15,040  01 

T©1  a]   loss 6,328    56 

Ret  gain  $     8,711    i: 

December  I,  L899,  to  December  I,  1900: 

Gross  earnings  all  contractors,  convid  labor $116,331    15 

Expenses  of  operations 120,363    1 1 

\.-t    loss    $     4,029  96 

Total  gains   $    11,844    32 

Total   losses 13,87  i  :> 

.\(i  log  .  December  I,  1899,  to  December  I,  1900 $    4,029  96 

Wi  gain,  December  1,  1898,  to  December  I,  1899 8,717    15 

\i-t  earnings  convid   labor,  two  years $    4,681    19 

The  gross  earnings  in  these  two  statements  comprise  tli<' 
total  charg(  s  to  the  various  conl  ractors  or  lessees  of  convict 
labor  after  deducting  all   rebates  and   reductions  allowed 
by  1 1 j -  ( loanmissionerB  on  labor,  and  some  items  of  expend] 
hires  credited    upon   their   respective  accounts  nn-1    vouch 


—  10  — 

ered.  Tn.  computing:  the  cost  of  maintenance  ami  opera- 
tions chargeable  to  the  earnings  of  convict  labor,  I  have 
treated  the  farm  and  manufacturing;  department  as  a  part 
and  parcel  of  the  Main  Prison.  The  object  of  the  manu- 
facturing- department  is  to  manufacture  clothing  for  the 
convicts  upon  the  presumption  that  the  cost  of  clothing 
could  be  materially  lessened  thereby.  For  that  reason  the 
cost,  of  the  manufacturing  department,  less  receipts  on  ac- 
count of  the  sales  of  clothing,  etc.,  constitutes  the  total  cost 
of  clothing  furnished  by  the  manufacturing;  department. 
The  object  of  the  farm  is  to  furnish  supplies  ami  food  for 
the  prisoners  upon  the  presumption  that  they  can  be  fur- 
nished cheaper  or  for  less  money  than  tin  v  could  b-  pur- 
chased; therefore,  the  cost  of  the  farm,  less  the  sales,  con- 
stitutes the  net  cost  of  the  supplies,  haulage,  o'<\,  fur- 
nished by  the  farm.  There  are  a  few  sale*,  as  shown  by 
the  cashbook,  on  account  of  supplies  and  other  materials 
charged  to  maintenance  account,  These,  with  other  re- 
ceipts, on  account  of  board,  transportation  refunded,  etc., 
should  be  deducted  from  the  amount  expended  for  main- 
tenance as  per  voucher  record,  in  order  to  get  the  net  cost 
of  maintenance.  The  net  cost  of  maintenance  as  per 
voucher  record,  added  to  the  net  cost  of  the  farm  ami  the 
net  cost  of  the.  manufacturing  department,  gives  the  tot  il 
cost  of  maintenance.  The  cost  charged  against  the  earn- 
ings of  convict  labor  in  these  statements  is  as  follows: 

December  1,  1898,  to  December  1,  1899: 

Cost  of  maintenance,  voucher  record....    $38,823   8? 
Less    board    and    miscellaneous   cash    re- 
ceipts and  moneys  refunded   1,042  60 

Net  cost  of  maintenance,  voucher  record  $37,779  27 

Cost  of  farm,  voucher  record $2:j>..';9o  92 

Less  farm  receipts,  cash 8,919  80 

Net  cost  of  supplies  furnished  by  farm, 
exclusive  of  labor 14,476   12 


—  11  — 

i  i  si  of  man ufacturing"  department $10. -497  00 

Less  manufacturing  department  re- 
ceipts, cash 1,977   36 

\ct  c ■.■-1  of  clothing  furnished  by  manu- 
facturing department*  exclusive  of  la- 
bor 8,519  70 

Total  cost  of  maintenance $60,775  09 

This  cost  is  distributed  to  workers  as  follows: 

Convict    labor,   contractors $53,186  26 

Convict   labor,  on  prison  operations 7,203  74 

Con-viel   labor,  on  old  prison  buildings...  385  09 

Total $60,775  09 

The  cost  of  convict  labor  on  operations  of  prison  on 
account  of  repairs,  improvements,  etc.,  loss  tlio  cost  oif  labor 
used  cm  theold  prison  buildings,  which  constitute3  the  onlv 
earnin.Q  from  that  source,  should  be  then  redistributed  to 
the  cost  of  convict  labor  furnished  to  contractors  or  lessees, 
which,  added  to  the  cost  shown  bv  voucher  record  on  ac- 
count of  prison  operations,  makes  the  total  cost  as  follows: 

Maintenance $5:5,1  Si;  26 

i-i  of  prison  operations,  convict  labor 7,20.')  74 

1  >   -!  of  operations,  red  voucher  record 32,963  42 


o 


Total  red  vouchers $93,353    i 

Total  white  vouchers  6,022  13 

Total  cost  to  maintain  and  operate  contract  labor  $99,375  55 
Total  cost  to  maintain  old  prison  labor 385  09 

Total  net  COfit  of  COnviol    labor $99,760  64 

Decembt  r  L,  1899,  to  l>eci  mber  !,  1900: 

Cosl  of  maintenance,  voucher  record   ...  $40,542  15 
Less     miscellaneous    cash     receipts    for 

board,  transportation   refunded,  etc...       2,426  92 

Net     cost     of     maintenance,     voucher 

record   $38,115  23 

Cor1  of  farm,  voucher  record $27,774  66 

I.'       farm  receipts r,62  I  28 

\.t   cost  of  supplies,  etc.,  furnished   by 
fa iin.  exclusive  of  labor $20,150  38 


—  12—     . 

Cost  of  manufacturing  department $21,524   71 

Less  manufacturing  department  receipts       3,330  48 

Ne1  cosl  of  (Nothing-  furnished  by  man- 
ufacturing department,  exclusive  of  la- 
bor    $18,204  2:> 

Total  cost  of  maintenance   $76,4(19  84 

This  cost  is  distributed  to  workers  as  follows: 

Convict  labor,  contractors $65,167  60 

Convid    labor,  prison  operations 10,172  :;2 

Convict  labor,  on  old  prison  buildings...        1,129  92 

Total  ^6,469  *4 

The  cost  of  convict  labor  on  account  of  prison  opera- 
tions,  less  llio  cost  of  labor  used  on  old  prison  buildings, 
which  constitutes:  the  only  earning  from  that,  source,  is  then 
redistributed  to  the  cost  of  convict  labor  furnished  the 
various  lessees  oi  contractors,  which,  added  to  the  cost 
shown  I » >  the  voucher  record,  makes  the  total  cost  as  fol- 
lows: 

Maintenance $  65,167  60 

Cost  of  prison  operations,  convict    labor 10,172  :12 

Cost  oi  operations,  red  voucher  record :>4,641  75 

Cost  of  old  prison  labor 1.129  92 

Total  red  vouchers $111,111   59 

Total  white  vouchers   9,249  52 

Total  net  cost  of  convict  labor $120,361  11 

Neither  the  books  of  the  Main  Prison  or  the  report 
of  the  Commissioners  show  the  true  condition  of  affairs. 
They  do  not  treat  the  moneys  expended  on  account  of  the 
farm  or  the  manufacturing  department  as  a  ]>■  irt-  of  the 
expenses  of  the  prison.  They  simply  treat  such  part  of 
these  expenditures  as  arc  furnished  in  supplies,  as  an  ex- 
pense, at  such  valuation  as  they  choose  to  put  upon  them, 
thereby  showing  a  fictitious  profit,  which  runs  through  the 
entile  system  of  calculations,  and  which  has  no  place  what- 
ever in  correct  bookkeeping.  Neither  do.  they  treat  all  ex- 
pense-: of  operations  as  an  expense,  but  only  such  part  of 


—  13  — 

same  as  they  see  fit,  and  the  balance  expended  on  those 
accounts  seems  to  be  offset  by  such  increases  in  inventories 
as  the  exigencies  of  the  occasion  demand.  Tn  their  trial 
balances  for  fc899  thev  charge  only  $87,618,66  of  red 
vouchers  against  the  earnings  of  contract  labor,  when  they 
should  have  charged  $99,7-60.64.  In  their  trial  balances 
for  L900  they  charge  only  $92,119.23  of  red  vouchers 
against  the  earnings  of  contract  labor,  when  they  should 
have  charged  $111,111.59,  which  leaves  $31,134.34  mi  red 
vouchers  alone  to  be  offset  bv  fictitious  earnings  and  in- 
creases in  inventories  that  should  not  exist.  If  a  fanner 
buys  a  plow  and  charges  it  to  his  operating  account,  and 
then  at  the  end  of  the  year  credits  himself  with  it,  the 
effect  would  be  the  same  as  if  he  had  never  charged  it. 
The  fact  that  he  has  the  plow  on  hand  may  reduce  his  ex- 
penditures for  the  next  year,  but  the  cost  of  that  plow  cer- 
tainly belongs  to  the  operating  account  of  the  year  in  which 
it  wae  purchased. 

CONTRACTS. 

The  prison  management  has  so  arranged  it  that  at  some 
-<  asons  of  the  year  the  convicts  at  the  Main  Prison  work 
nine  and  nine  and  one-half  honrs  per  day.  while  at  other 
seasons  of  the  year  thev  work  ten  and  ten  and  one-half 
honrs  pel-  day.  The  average  day's  labor  for  the  year  is  ten 
h<  ur-.  If  a  convict  becomes  t<  o  ill  during  the  day  to  work, 
be  i-  excused  by  the  physician,  and  such  time  as  he  actually 
work-,  counting  ten  hours  per  day,  is  charged  upon  the 
rime  Register  againsl  the  contractors.  The  Time  Register 
contain-  only  such  net  time  a-  the  convict  i-  engaged  at 
work,  and  is,  therefore,  the  basis  of  distribution  of  conviel 
labor.  The  net  time  shown  by  the  Time  Register  is  then 
-npp-  -ei|  tn  be  posted  on  the  ledger  a-  a  charge  to  each  con 
tractor  or  lessee  of  conviel  labor  at  the  rate  or  rates  speci 

lied    ill    t  lie   collt  ract. 


—  14  — 

BOX  FACTORY. 

Statement  7.  This  statement  shows  the  total  number  of 
days  and  rate  per  day  charged  to  the  box  factory  for  con- 
vict labor,  by  months,  at  the  Main  Prison,  from  December 
1,  1898,  to  December  1,  1900;  also  total  number  of  days 
shown  to  have  been  worked  by  the  Time  Register,  the  net 
charges  constituting1  the  gross  earnings  to  the  State. 

Gross  earning-s,  two  years  $  4,898  52 

Cost,  two  years 6,199  61 

.Net  loss,  two  years $  1,301   09 

.X umber  of  days'  labor  received 13,328  75 

N  umber  of  da\  s  charged  on  account 12,081  10 

Number  of  days  not  charged 1,247  65 

Number  of  days  allowed  free  under  contract 1,226 

Number  of  days  to  be  added  to  account 21  65 

There  seems  to  be  no  regular  legally  drawn  contract  ex- 
isting between  the  State  and  this  company.  They  seem  to 
have  been  operating  under  an  agreement  made  on  January 
31,  1898,  between  John  II.  Trice  and  W.  H.  Morrow,  on 
the  part  of  the  State,  and  I.  Wingard,  the  manager,  where^ 
by  the  State  was  to  receive  35  cents  per  capita,  for  the  first 
six  months,  and  40  cents  per  capita  for  the  remaining 
period,  which  may  be  extended  to  March  1,  1903.  I  find 
in  the  papers  a  letter  from  Hon.  W.  A.  Garter,  one  of  the 
Prison  Commissioners,  dated  September  26,  1900,  to  Mr. 
Wingard,  calling  his  attention  to  the  fact  that,  under  the 
agreement  then  existing  the  State  was  losing  money.  This 
resulted  in  a,  new  contract  being  made,  whereby  the  State 
now  receives  45  cents  per  day  for  the  labor  employed. 
Under  this  contract  they  are  entitled  to  two  extra  men  free, 
or  1,226  days  for  the  two  years.  This  leaves  21.65  days 
still  unaccounted  for  that  should  be  charged  to  their  ac- 
count. Under  this  contract  from  twenty  to  twenty-five 
mei).  are  worked. 


—  15  — 

CHAIE  AND  CAR  IMAGE  COMPANY. 

Stat<  ment  8.  This  statement  shows  the  total  number  of 
davs  and  rate  per  day  charged  to  the  Nashville  Chair  and 
(  arriage  Company  for  convict  labor  at  the  Main  Prison, 
by  months,  from  December  1,  1898,  to  December  1,  1900, 
also  total  number  of  days  worked  as  shown  by  the  Time 
Register,  the  net  charge  coaistituting  the  gross  earnings  to 
tiie  State. 

Gross  eai  dings,  two  veurs   $20,380  76 

'       ! .  1  wo  years 24,219  ..4 

\'e;   loss,  two  years  $  3,832  r>s 

Number  of  days'  labor  received,  time  register 51,301 

Number  of  days  charged  on  account 45,302  .51 

Number  of  days  not  charged  5,998  49 

N  umber  of  days  allowed  free  under  contract 1,226 

Number  of  days  that  should  be  added 4,772    !'i 

which,  at  the  average  price  of  45  cents  per  day,  makes  $2,147.62. 

This  contract  bears  date  of  February  8,  1898,  and  ex- 
pires March  1,  1903  ;  it  provides  for  the  employment  of 
from  twenty-five  to  ninety-nine  convicts,  divided  into  two 
classes,  for  which  <i()  cents  per  day  is  paid  for  the  first  class, 
and  30  a  ats  i  >  r  'lay  for  the  second  class,  each  day  to  count 
!•   i  hours,  and  two  helpers  each  day  allowed  free  of  charge 

FIZEE&  CO. 

Statement  9.  This  statement  shows  the  total  number  of 
days  and  rate  iter  day  charged  to  Fizer  &  Co.  for  convict 
labor  ai  the  Main  Prison,  by  months,  from  December  1, 
1898,  im  December  1,  1900,  also  total  days  worked  as 
shown  by  Time  Register,  the  net  charge  constituting  the 
38  <  arnings  to  the  State ;  also  total  rent  for  Brick  Plant 
and  Royalty. 

Gros  -  eai  nings,  two  j  ears  $12,884   i  0 

I    ist,  two  years L3,597  95 

\h  loss  io  State,  two  \  ears $     713  65 


—  16  — 

Number  of  days*  labor  received.  Time  Register 29603 

Number  cf  days'  labor  charged  to  account 2G07S 

\  umber  of  days'  labor  not  charged 3525 

I  find  no  provision  in  the  contract,  allowing  the  labor 
not  charged.  This  contract  hears  date  of  February  9, 
1898,  aiid  expires  March  1,  1001,  and  while  in  operation 
employs  from  thirty  to  sixty  men  at  a  rate  of  75  cmts  per 
day  for  first  class,  55  cents  per  day  for  second  class,  and 
30  cents  per  day  for  boys  and  "  deadheads."  In  March, 
1898  and  1899,  and  in  June,  1899,  credits  of  $101.13, 
$138.37.  and  $500.00,  respectively,  were  allowed  for  brick 
and  for  building;  kiln®,  etc.,  in  violation  of  the  express  prt> 
visions  of  the  statute  requiring  all  expenditures  to  be 
voiK-hcrel  and  paid  for  out  of  the  State  Treasury.  In 
June,  1809,  a  credit  of  $250.00  was.  given  them  as  a  re- 
duction on  labor,  for  which  I  find  no  provision  in  the  con- 
tract. Net  earnings  to  the  State,  as  shown  by  this  state- 
ment, on  account  of  Royalty  on  brick  amount  to  $1,065.53 
for  the  two  years,  and  net  earnings  to  the  State  on  account 
of  rent  of  Brick  Plant  amount  to  $5,300.00  for  the  two 
years. 

FOUNDRY. 

Statement  10.  This  statement  shows  the  total  number 
of  days  worked  as  per  Time  Register,  material  produced, 
with  rate  charged  for  same  per  one  hundred  poundsi  to 
Duncan  &  Co.,  operators  of  th-  foundry,  by  m  mths,  from 
December  1.  1S98,  to  December  1,  1900,  tic  net  charge 
constituting  the  gross  earnings  to  the  State. 

Gross  earnings,  two  years $-!<>. ::  \i\  "/.; 

Cost,  two  years 31,112  >'■>'.' 

Net  earnings  to  State,  two  years $  9,234    10 

Number  of  days'  labor  furnished,  time  register 07,-410 

This  contract  boars  dat"  of  June  26,  ISO",  and  expires 
March  1,  1903.  It  provides  for  employment  of  ninety- 
nine  men.  and  for  the  payment  to  the   Stat"'  of  t>5  c  nt- 


—  17  — 

per  hundred  pound-  for  first-class  castings,  and  50  cents 
per  hundred  pound-  for  second-class  castings,  the  mini- 
mum price  fto  lie  paid  per  month  being  $  1,500. 00.  The 
ledger  account  of  this  company  contains  a  charge  for  :>0<>.- 
175  pounds  of  third-class  material  for  the  two  years  at  10 
cent-  per  hundred  pounds.  T  find  no-  provision  in  the  ■  con- 
rr;iet  covering  this.  In  November,  1809,  a  credit  of 
$134vl8  was  allowed  for  discount,  and  $793.04  allowed 
and  charged  to  "profit  and  loss."  In  December,  1 S •  1 1 > ,  a 
credit  of  $1,242.14  was  allowed  on  Foundry  production. 
The  earnings  reported  in  this  statement  are  net,  after  de- 
ducting these  credits.  I  find  no  provision  in  the  contract 
providing  for  these  credit-. 

HOSIERY  COMPANY. 

Staiemenl  11.  This  statement  shows  the  total  number 
of  days  and  rate  per  day  charged  to  the  Rock  City  Hosiery 
Company  for  convict  labor  at  the  Main  Prison,  by  months, 
from  December  1.  L898,  to  December  1,  1900,  each  year 
separately,  also  number  of  days  furnished  as  shown  by  the 
Time  Register,  the  total  net  charge  constituting  the  gross 
earnings  to  the  State. 

Gross  earnings,  two  years  $  55,396  OS 

66,378  o:, 

V-:  1    ss *   10,98]    97 

y    mber  at  days'  labor  furnished,  Time  Register 143,403 

N   imber  of  days'  labor  charged  to  account 141,526  94 

\  uin'iiiT  i  {'  days'  labor  n<  I  charged  to  account L',874  06 

Th(   lab  r  not  charged  i-  no1  allowed  free  under  any  pro 
vision  oi  i  ke  conl  raol  that  I  can  find. 

Th<  convicts  charged  to  the  Hosiery  Company  are  oper- 

1  under  two  contracts — one  for  as  many  as  ninety-nine 

<•  uvicts    for    manufacturing    hosiery,    and    one   for    from 

oty  t<    fifty  convicts  for  coloring  and  dyeing  hosiery, 

etc.     The  original  contract  with  Leo  Kaufman  bears  date 


—  18  — 

February  12-,  1897,  but  was  modified  March  1,  1899,  by 
providing  for  the  payment  of  42  cents  per  day  per  con- 
vict instead  of  10  cents  per  dozen  for  men's  and  women's 
hose,  and  ".}  cents  per  dozen  for  children's  hose.  The  con- 
tract with  Isaac  May,  made  March  7,  1899,  provide©  for 
the  employment  of  from  twenty  to  fifty  convicts  at  40  cents 
per  day,  and  expires  March  1,  1003.  I  find  no  provisions 
in  the  contract  for  the  employment  of  the  convicts  shown 
in  this  statement  at  the;  rate  of  28  cents  per  day.  In 
March,  1809,  this  company  received  twenty-eight  days'  ex- 
tra work,  which  was  not  charged. 

Tn  November,  1900,  a  credit  of  $057.06  was  given  this 
company  on  their  labor  account  for  an  economic  boiler,  in 
pursuance  of  an  agreement  that  seemed  to  have  been  made 
March  13,  1899.  This  boiler  seems  to  have  been  pur- 
chased by  the  Hosiery  Company  from  John  P.  Dale,  De- 
c  mber  12,  1898,  foi  the  sum  of  $645.00.  If  it  was  right 
for  the  Commissioners  to  purchase  this  boiler,  their  failure 
t'  pay  for  the  same  by  voucher  is  in  violation  of  the  statute 
providing  that  all  expenditures  for  the  Prison  shall  be  paid 
out  of  the  State  Treasury. 

TENNESSEE  SHOE  MANUFACTURING 
COMPANY. 

Statement  12.     This  statement  shows  the  total  number 

of  days  and  rate  per  day  charged  to  the  Tennessee  Shoe 

Manufacturing  Company  for  convict  labor  at  the  Main 

Prison,  by  months,  from  December  1.  1898,  to  December 

1,  1900,  each  year  separately,  also  number  of  days'  labor 

furnished  as  shown  by  the  Time  Register,  the  total  net 

charge  constituting  the  gross  earnings  to  the  State. 

'J ross  earnings,  two  years $  42,178  15 

(  (ist,  two  years 47,40!)  70 

Loss,  two  years   $     5,291    55 

Number  of  (lays'  labor  furnished,  time  register 102,025 

Number  of  days'  labor  charged  to  account. 97, SSI 

Number  of  days'  labor  not  charged 4.144 


—  19  — 

I  find  no  provisions  in  The  contracts  allowing  more  than 
three  h(  Ipers  free  to  Goodbar-  and  two  helpers  free  to 
Yerkes,  aggregating  for  the  two  years  3,130  days,  leaving 

no       n  ■  •  * 

a  balance  of  1,014  days  unaccounted  for.  The  convicts 
operated  by  this  company  are  under  two  contracts — one 
with  Goodbar  &  Co.  for  the  manufacture  of  shoes,  and  one 
with  II.  C.  Yerkes  for  the  manufacture  of  shoe  findings. 
Each  contract  bears  date  of  February  :>:>>,  1898,  ae.d  ex- 
pires  March  1,  1901,  and  calls  for  the  employment  of  as 
maii\  as  ninety-nine  men  at  the  rat  :  of  10  cent-  per  day 
for  the  first  year,  and  4,">  cents  per  day  for  the  second  and 
third  years.  They  have  options  to  extend  contracts  to 
March  1,  1903,  by  paying  50  cents  per  day. 

TEXXESSEE  HARNESS  COMPANY; 

Statement  IS.  This  statement  shows  the  total  number 
of  days  and  rate  per  day  charged  to  the  Tennessee1  Harness 
( '<  m pane  for  convict  labor  at  the  Main  Prison,  by  months, 
from  December  1,  1898,  to  December  1,  1900,  each  year 
separately,  also  total  number  of  days'  labor  shown  to  have 
been  furnished  by  the  Time  Register,  the  net  charge  consti- 
tuting the  gross  earnings  to  the  State. 

Gross  earnings,  two  years  $27,18-J  23 

I  0  t    20^157  62 

Ne1    earnings    $  7,026    u 

Number  of  days'  labor  furnished,  Time  Register 13,117 

Number     E  days'  labor  charged U,618  5 

Numb*  r  of  days'  la  Inn-  no1  charg'ed l.  198  5 

The  nnnihei- of  days  not  charged  are  allowed  free  under 
the  com  rack 

This  contract   bears  date   February   23,    L898,  and  ex- 
pire-  March    L,    L901 ;  il   provides  for  the  employment  of 
fifty  convicts  at  the  rate  of  60  cent-  per  da.}    for  the  firsl 
year,  and  70  cent-  per  day  for  the  second  year.     This  com 
puny  hae  the  privilege  under  the  contract  of  renewing  or 


—  20  — 

extending  it  to  March  1,  100:3,  by  paying  80  cents  per  day. 
They  seem  to  lie  working;  about  an  average  of  six  men  per 
day  at  the  rate  of  25  cents  per  day,  for  which  I  find  no 
provision  in  the  original  contract. 

INMAN. 

Statement  1-k-  This  statement  shows  the  total  number 
of  days  and  rate  per  day  charge  1  G.  W.  Nixon.,  assignee, 
for  convict  labor  furnished  at  Inman.  Term,.,  by  months. 
from  December  1,  1898,  to  December  1,  1900,  each  year 
separately,  the  net  charge  constituting  the  gross  earnings 
to  the  State. 

Gross  earnings,  fourteen  months  $14,889  98 

Cost,  fourteen  months 9,134  3fi 


Net  earnings,  fourteen  months $  5,755  62 


Number  of  days'  labor  furnished.  Time  Register 21,017 

Number  of  days'  labor  charged  to  account 18,689  10 

Number  of  days'  labor  not  charged 2,327  90 

Average  per  day 6  3S 

The  men  not  charged  were  cooking-  and  in  the  hospital 
and  doing'  other  work  around  the  camp,  and  seem  to  be 
allowed  in  the  contract. 

The  convicts  at  Inman  seem  to  have  been  worked  under 
one  or  more  modifications  of  an  old  contract  dated  June 
16,  1896.  This  contract  was  made  and  entered  into  be- 
tween the  Board  of  Prison  Commissioners  and  the  Ten- 
nessee Coal,  Iron  and  Railroad  Company,  and  provided 
for  the  payment  by  said  company  to  the  State  of  25  cents 
per  ton  for  the  labor  performed  by  the  convicts  in  mining- 
iron  ore.  This  contract  was,  a  few  days  after  its  execu- 
tion, transferred  to  George  Nixon  by  said  company,  the 
company  agreeing'  to  take  the  output  of  the  mines  from 
him  at  60  cents  per  ton,  the  said  Nixon  to  furnish  oils  and 
other  necessaries  for  mining  purposes.  The  Legislative 
Committee  of  1897,  after  reviewing  these  and  other  facts, 
on  pages  10  and  11  of  their  report,  stated  that  25  cents  per 


—  21  — 

ton  was  not  fair  and  just  to  the  State,  and  that  unless  the 
State  was  paid  at  least  30  cents  par  ton  the  contract  should 
be  discontinued.  The  result  of  this  investigation  seems  to 
have  been  a  change  in  the  contract  from  the  payment  of 
25  cents  per  tun  to  05  cents  per  day,  which  was  afterwards 
increased  to  75  cents  per  day;  and  when  the  convicts  were 
taken  away  from  the  camp  in  January,  1900,  the  State 
was  receiving  90  cents  per  day  for  those  working-.  In 
May,  1900,  a  credit  of  $14S.T3  was  allowed  on  this  account. 
sufficient  to  balance  it,  and  charged  to  profit  and  loss.  I 
find  no  provision  in  the  contract  covering1  this.  There 
was  no  separate  account  kept  as  to  the  cost  of  the  convicts 
at  Inman,  and  the  charges  of  cost  against  the  earnings  at 
Ionian  are  based  upon  the  cost  of  maintenance  and  opera- 
tions at  the  Main  Prison.  The  Commissioners  might  with 
tin'  same  propriety  have  kept  Brushy  Mountain  operations 
in  the  same  manner. 

Sliid'tneid  15.  This  statement  shews  all  miscellaneous 
earnings  from  convict  labor  at  the  Main  Prison  from  De- 
cember 1,  1898,  to  December  1,  1900,  by  months,  also  the 
net  earning  of  25  cents  per  day  each  for  board  of  United 
States  prisoners. 

Total  miscellaneous  earnings  $      44G  (12 

:•    a]  earnings  from  board  of  United  States  prisoners.     19,9?4  ~~> 

FARMING  OPERATIONS. 

>l<ilrn,cnls  Vi  mid  77.  These  statements  show  the 
moneys  expended  and  cash  receipts  on  account  of  farming 
operations  at  the  Alain  Prison,  by  months  and  accounts, 
from  December  1.  L898,  to  December  1,  1900,  each  year 
separately.  The  accounts  of  the  Morrow  farm,  for  which 
tin-  State  pays  an  annua]  rental  of  $3,000.00,  are  nut,  kept 
separately  from  those  of  the  State  farm,  and  are,  therefore, 
included  in  these  statements. 


—  22  — 

December  1,  1898,  to  December  1,  1899: 

Total  expenditures,  voucher $23,395  92 

(  ash   receipts   8,918  SO 

Balance $14,476  12 

December  1,  1899,  to  December  1,  1900: 

Total  expenditures,  voucher $27,77-1   >'■•"■ 

(  ash  receipts 7,624  28 

Balance $20,150  38 

As  to  whether  the  farm  ia  or  is  not  making  any  money, 
no  one  can  tell.  The  net  coat  is  charged  to  maintenance 
account,  and  it  is  to  be  presumed  that  by  its  operations  the 
cost  of  prison  supplies  is  materially  lessened.  The  eo  t 
of  labor  from  December  1,  1898,  to  December  1,  1899, 
amounted  to  $4,602.21 ;  while  from  December  1,  1899,  to 
December  1,  1900,  it  was  $6,226.0-4.  Farming  operations 
for  the  past  two  years,  including  the  Morrow  farm,  re- 
quired an  expenditure  of  $61,999.13,  and  I  submit  whether 
or  not  that  outlay  of  money  should  produce  greater  or  less 
results  than  are  herein  perceptible.  In  checking  up-  the 
farm  books,  I  find  that,  the  farmer  lias  kept  an  account,  of 
his  transactions  and  has  reported  the  same  promptly  to  the 
authoritiesj.  On  December  14,  1898,  he  purchased  twenty- 
three  sacks,  of  bran  for  $24.15,  out  of  the  proceeds  of  the 
sales  of  wheat,  amounting  to  $209.27.  The  cost  of  this 
bran  was  never  vouchered,  as  required  by  law.  This  trans 
action  was  reported  by  him  as  it  occurred,  and  a  voucher 
should  have  been  issued  for  the  bran  by  the  prison  manage- 
ment instead  of  handling  the  transaction  as  they  did.  The 
practice  of  buying  and  selling  beef  cattle  and  hogs  seems 
to  exist  to  some  extent  in  farming  operations,  amounting 
in  tlic  two  years  to  $4,886.21. 

ACCOUNTS  PAYABLE. 

Statement  IS.  This  statement  shows  Accounts  Payable, 
Main  Prison,  December  1,  1900.  Total  amount,  $16,- 
220.88. 


—  23  — 

ACCOUNTS  RECEIVABLE. 

Statement  19.  This  statement  shows  Accounts  Rec  iva- 
ble,  Main  Prison,  December  1,  1900,  Total  amount,  $25,- 
663.83. 

ACCOUNTS  RECEIVABLE  I  FARM). 

Statement  20.  This  statement  shows  Accounts  Receiva- 
ble, Main  Prison,  Decembei  1.  L900,  farming  dp. 'rations. 
Total  amount,  $1,969.04. 

PAY  ROLL. 

Statement  21.  This  statement  shows  the  pav  roll  for 
.Main  Prison  for  November,  1900,  giving  amounts  due 
i  ,  ch  and  salary  received  per  month.  Total  for  November, 
$2,151,65. 

CASH  RECEIPTS. 

Statement  22.  This  statement  shows  the  total  cash  re- 
ceipts ol  th<  State  Prison  from  all  sources,  by  months. 
amounts,  and  accounts,  from  December  L,  1898,  to  Decem- 
bei  i.  L900,  each  year  separately. 

Decembei    L,  L898,  to  December   l.  L899...   $306,650  35 
bei    1.  L899,  to   December   1.   L900.  . .     415,552  96 

Total  cash  receipts  $722,203  31 

EXPENSES  OF  OPERATIONS. 

December  l,  L898,  to  December  I.  L899...   $226,382  00 
Di      Li  ber  l.   L899,  to   December  I,  L900...      2S0,55'<    38 

'I  ota]  expendil  ures  $506,939  ss 

■  i  cash  receipts  over  expenditures  $215,263    13 

Th  cash  receipts,  together  with  the  $100.90  on  hand 
Decembe]  1.  L898,  amounting  in  the  aggregate  to  $722,- 
304.21,  were  paid  into  the  State  Treasury  from  December 
1.  L898,  to  I  ).•(■(•!, iIhm-  1.  L900;  while  the  books  of  the  State 
Comptroller  and  Treasure  r  show  the  sum  of  $722,321.13 
to  have  been  paid  in.     This  l<  aves  a  balance  of  $16.92  paid 


—  24  — 

into  the  State  Treasury  by  the  Prison  Commissioners  more 
than  the  eashbook  shows  should  have  been  paid.  This  is 
an  amount  received  that  was  never  credited,  so  far  as  I 
have  been  able  to  ascertain,  or  charged  on  the  eashbook. 

TIME  REGISTER. 

Statement  23.     This  statement  shows  the  total  number 

of  days  maintained,  average  per  working  day,  and  how 

and  by  whom  the  convicts  were  employed  at  the  Main 

Prison,  by  months,  from  December  1,  1898,  to  December  1, 

1900,  each  year  separately. 

December  1,  1808,  to  December  1,  1899: 

Average  number  convicts  in  prison  each  working1  day       1,006 

Total  (lavs  maintained 314,872 

Total  days  working  oa  contracts 2',\~>,'2'.'A  5 

Total  days  working  on  prison  operations 33„564 

Total  (lays  cooking,  etc 46,073 

December  1,  1899,  to  December  1,  1900: 

Average  number  convicts  in  prison  each  working  day       1,064 

Total  days  cooking-,  etc 54.015 

Total  days  working  on  prison  operations 41.135 

Total  days  working  on  contracts 237,184 

Total  days  maintained    332,934 

This  statement  is  the  basis  of  distribution  of  both  the 
earnings  of  convict  labor  and  the  cost  chargeable  thereto. 

COST  OF  NEW  PENITENTIARY. 

Statement   2Jf.      This   statement   shows   various    appro- 
priations made  by  the  Legislature  for  building  and  erect 
ing  the  new  penitentiary  at  Nashville  and  the  prison  at 
Brushy    Mountain,    and    the   various    amounts   expended 
therefor. 

Total  cost  to  December  1,  1S9S: 

Main   Prison    $554,375  57 

Brushy  Mountain    200,275  69 

Genera]  expenditures 40,899  22 

Total $795,550    ! S 

Total   appropriations   787.684  68 

Amount  overdrawn.  December  1.  1898  $     7,865  80 


—  25  — 

In  this  statement  credit  is  given  for  all  appropriations 
claimed.  While  the  appropriation  for  $36,867.14  is  treat- 
ed regularly  as  such,  because  it  was  included  in  the  ap- 
propriation bill  of  1897,  it  was  never  intended  that  this 
amount  should  he  added  to  the  original  appropriation  of 
$600,000.00  made  for  the  purpose  of  building  and  erects 
Lug  the  State  Prison,  and  its  incorporation  in  the  appro- 
priation bill  was  through  a  misapprehension  of  facts  in 
c<  amection  therewith. 

The  cost  of  the  outer  wall  of  the  Main  Prison  was  $36,- 
867.11,  tlif  details  of  which  are  as  follows: 

Neely  A:  Smith $27,872  05 

Stockades,  tools,  etc 1,198  :.4 

Freight,  X..  ('.  &  St.  L.  Ry.  Co 2,814  5S 

Blacksmithing,  etc    300  I 

iates •••••-  '  • 

Towers 243  00 

Guard   wire 125  00 

Excavations  2,969  42 

Foundations 295  50 

Architect  and  supervision 716  36 

Cotal    $36,867  14 

These  amounts  were  paid  from  time  to  time  to  the  vari- 
ous parties  entitled  thereto  pending  the  construction  of  the 
outer  wall.  After  its  completion  the  Prison  Commission- 
ers  drew  tip  another  voucher,  made  payable  to  themselves, 
for  $36,867.14,  the  i-'i- 1  of  i he  outer  wall,  for  which  Comp- 
troller's warrant  NTo.  1 1  7  7 '. »  was  issued  on  December  18, 
1896,  with  ;i  view  of  passing  the  same  into  the  Treasury 
of  the  State  to  the  credit  of  the  Building  Fund.  The  re- 
sult   i-  that    two  voiieher-  were  issued  by  the   Prison   Com 

tnissioners  covering  the  same  services  performed  for  th  • 
Stan-.  The  Comptroller  would  never  have  issued  his  war- 
rant   fo]    this  voucher,  had    he  been    in    pos-essioii   of  all   the 

facts :  and  had  the  State  Treasurer  recognized  it.  the  eiffecl 
would  have  been  the  same  as  it  the  <•< i-t  of  the  outer  wall 


—  26  — 

had  never  been  charged  to1  the  Building  Fund,  as  required 
by  law.  I  am  informed  that  the  books  of  the  Comptroller's 
office  show  that  this  warrant  is  still  outstanding.  If  so, 
it  is  an  outstanding  obligation  of  the  State,  and  should  be 
immediately  looked  up  and  canceled,  and  due  record  there- 
of made  upon  the  legislative  journals. 

The  report  made  by  Mr.  Nixon  for  the  Board  of  Prison 
Commissioners,  of  date  of  June  30,  1900,  showing  a  bal- 
ance undrawn  of  $8,039.27  on  the  Building  Fund  account, 
is  incorrect. 

WARDEN'S  BOOKS. 

The  books  of  the  Warden  have  all  been  checked,  and  he 
has  promptly  reported  and  paid  over  at  the  end  of  each 
month  all  gate  receipts  and  other  miscellaneous  collections 
made  by  him  to  the  Prison  Commissioners,  except  that  the 
books  of  ex-Warden  W.  H.  Gammon  show  that  lie  still  owes 
r !:  State  the  sum  of  $84.48  for  a  portion  of  his  collections 
in  June,  1899. 

BOOKS. 

The  books  kept  at  the  Main  Prison  are  wholly  inadequate 
and  not  in  keeping  with  the  great  volume  of  important 
business  transacted.  The  eashbook  is  one  of  original  en- 
try. On  the  debit  side  it  is  charged  with  the  payments  of 
moneys,  and  on  the  credit  side  are  placed  the  amounts  paid 
into  the  State  Treasury.  This  is  not  as  it  should  be.  There 
should  be  a  bonk  of  blank  receipts,  numerically  numbered. 
A  receipt  should  be  given  for  every  cent  paid  in,  stating 
from  whom  and  on  what  account  received.  This  should 
then  be  posted  to  the  eashbook  as  a  charge  against  Cash, 
The  credit  side  of  the  eashbook  should  contain  the  disburse- 
ments of  the  prison,  posted  there  from  the  voucher  records. 
At  the  end  of  the  month  these  amounts  should  be  abstracted 
by  accounts  and  posted  to  a  general  ledger  containing  these 
accounts.  The  total  charges  on  these  accounts  then  added 
together  constitute  the  total  cost  of  prison  operations  for 


—  27  — 

that  mouth,  and  should  balance  with  the  voucher  rec- 
rds.  This  general  ledger  should  contain  no  individual 
accounts.  There  should  also  be  a  ledger  containing  all  in- 
dividual accounts,  to  which  should  be  posted  from  the  Time 
Register  the  c<  nviet  laboi  and  any  or  all  other  matters  per- 
taining to  prison  operations  necessary  to  properly  conduct 
tin  :  Lisiness.  In  classifying;  the  accounts  for  which  mon- 
eys are  expended,  every  dollar  expended  on  the  Foundry 
Building  or  Harness  Company  Building,  or  any  other 
building,  fin-  repairs  or  otherwise,  should  be  charged  di- 
ectly  I  i  the  operations  of  thai  department,  thereby  de- 
creasing as  much  as  possible  the  moneys  to  ha  distributed 
pro  raia  between  all  operative  accounts  upon  the  basis  of 
the  number  of  convicts  employed  in  each.  This  would  place 
h  contracl  more  directly  upon  its  own  merits  and  would 
1  th<  officials  in  charge  bo  keep  directly  in  touch  with 
the  result  of  the  operations  of  each  cent ract  at  the  end  of 
each  month.  As  the  books  are  kept  now,  all  expenditure- 
arc  prorated  equally.  This  does  injustice  to  some  com;  ract- 
ors,  while  it  helps  others.  The  cost  of  the  manufacturing 
department,  less  the  sales  of  thai  department  for  each 
month,  constitutes  the  cosl  of  clothing  furnished,  by  that 
department.  This  cost  should  then  be  distributed  between 
the  State  and  Brushy  Mountain  on  the  pro  vale  basis,  bear- 
ing in  mind,  also  the  difference  in  the  durability  of  the 
clothing  at  the  two  places.  Brushy  Mountain  should  then 
be  charged  with,  and  should  un  for,  that  pan  of  the  c 
<•!  clothing.  The  balance  of  the  cosl  of  clothing  furnished 
by  the  manufacturing  department  should  then  be  added  to 
the  clothing  bought,  and,  charged  directly  fco  thai  account 
on  the  voucher  record,  and  distributed  with  other  supplies, 
etc.,  to  the  maintenance  account.  This  would  absolutely 
eliminate  all  fictiti  profits  from  th  books  on  this  ac- 
count. 

The  cosl  of  the  farm,  less  the  3ales  or  receipts,  constiti   e 
the  cosl  of  the  supplies  furnished  by  the  farm.      This  cost, 
no  more  or  less,  should  then  b    added  to  the  monevs   •' 


—  28  — 

pended  for  other  supplies,  as  shown  by  the  voucher  record, 
and  distributed  to  the  maintenance  account.  The  total 
cost  of  maintenance,  less  any  moneys  refunded,  etc.,  should 
then  be  distributed  pro  rata  to  the  various  prison  operative 
accounts,  according  to  the  department  in  which  each  convict 
is  engaged  at  work.  Then  the  cost  or  moneys  expended 
for  prison  operations,  both  for  labor  and  amounts  paid  for 
by  voucher,  less  any  amounts  that  may  have  been  expended 
and  charged  directly  to  any  special  account,  should  be 
distributed  pro  rata  to  the  various  lessees  or  contractors  of 
convict  labor  and  charged  to  the  department  in  which  the 
convict  is  working.  These  distributions  can  all  ba  made 
properly  by  journal  entry  and  can,  all  be  traced  back  to  the 
voucher  record ;  and  when  posted  to  the  ledger  account,  the 
total  charge  on  the  debit  side  of  the  account,  constitutes  the 
cost  of  that  department  to  the  State  for  the  month,  year, 
or  other  given  period.  Vouchers  should  issue  from  a 
voucher  book,  numbered  numerically,  the  original  entry  be- 
ing upon  the  stub  thereof,  instead  of  being  issued  first,  then 
numbered,  and.  then,  entered  upon  the  voucher  record.  The 
individual  ledger  should  contain,  among  others,  the  ac- 
counts of  all  lessees  or  contractors  of  convict  labor. 

The  total  number  of  convicts  charged  up  to  these  ac- 
counts should  balance  with  the  total  number  of  convicts 
shown  to  have  worked  there  by  the  Time  Register.  If  the 
State  gets  nothing  for  some  of  the  convicts  furnished  its 
contractors,  they  should  be  charged  up  to  them  just  as 
though  a  stipulated  sum  was  being  paid.  In  this  way  the 
books  are  always  in  balance  with  the  convicts  in  prison  as 
well  as  in  balance  with  moneys  expended  or  received. 

BRUSHY  MOUNTAIN  MIXES. 

Statement  "AA"  shows  the  total  expenditures  and  net 
sales  of  coal  and  coke  and  various  other  receipts  from  De^ 
cember  1,  1898,  to  December  1,  1900.  The  total  expendi- 
tures amount  to  $201,506.69  and  constitute  every  cent  ex- 


—  29  — 

pended,  from  the  rations  furnished  the  laborer  cutting  the 
coo]  bo  the  collection  of  the  earnings  and  placing;  them  into 

the  State  Treasury.  The  sales  of  coal  and  coke  and  other 
miscellaneous  receipts,  amounting  to  $470,111.22,  consti- 
tute the  gross  earnings  for  the  time  mentioned,  exec] it  the 
sum  of  $44,945.52  is  still  uncollected,  and  is  included 
in  the  statements  showing  Accounts  and  Bills  receiv- 
able. These  accounts,  in  my  opinion,  are  all  good,  and 
arc  treated  as  earnings  in  this  report.  By  deducting  the 
expenditures  from  the  gross  earnings  it  will  be  seen  that 
these  magnificent  properties  have  yielded  to  the  State  with- 
in the  past  two  years  the  sum  of  $208,604.53  net  earnings, 
or  $104,302.26  per  annum:  or  from  December  1,  1898,  to 
December  1.  1899,  $69,343.66,  and  from  December  1, 
1899,  to  December  1,  1900,  $139,260.S7. 

Statement  "A"  sho>ws  gross  earnings,  expenses  of  opera- 
tions, and  net  earnings  by  months;  also  total  convicts  in 
prison,  average  for  each  working  day,  total  working,  and 
average  per  working  day  from  December  1,  1898,  to  De^ 
cember  1,  1900.  The  convict  who  works  not  only  has 
to  pay  al!  the  expenses  of  the  mines,  but  has  to  support 
those  who  are  in  the  hospital,  cooking,  etc.,  who  arc  not 
earning  any  money  ;  therefore  it  costs  to  maintain  and  oper- 
ate workers  82  cents  per  day.  The  gross  earnings  for  each 
worker  is  $1.48  per  day,  and  the  net  earnings  is  66  cents 
per  day. 

Statement  "BB'  shows  expenditures  distributed  be- 
tween co;i]  and  coke.'  the  net  side-  of  each  in  tons,  and 
amounts  and  eos1  and  -ale  price  per  ton. 

Coke  operating  expenses $111,293  99 

Coal  operating  expenses  L50.2G l    is 

Total  expenditures  as  per  Statemenl  "AA" $261,498   !T 

Coke  sales  $222,692  05 

Coke  ••N|„-ns.'s li  l,293  99 

\'-i  earnings,  coke $111,398  06 


—  30  — 

Coal  sales $242.-:]::   79 

Coal  expenses   150,204  4S 

Net  earnings,  coal .    $  92,619  31 

These  earnings,  added  to  other  miscellaneous  earnings 
in  Statement  "AA,"  together  with  the  difference  in  invoice 
of  coal  and  coke  on  hand  December  1,  1898,  and  December 
1,  1900,  constitute  the  net  earnings  ($208,604.53)  given 
in  Statement  "AA." 

In  distributing  the  cost  of  operations  between  coal  and 
colv  at  mine-  where  both  products  arc  produced,  it  is  the 
general  custom  to  divide  it  so  that  coke  shall  pay  one-third 
and  coal  two-thirds,  upon  the  assumption  that  it  takes  two 
tons  of  coal  to  make  one  ton  of  coke;  but  owing  to  the  supe- 
rior quality  of  this  coal,  one  ton  produces  .42  of  a  ton.  of 
e.  In  this  distribution  coal  at  cost  of  mining  and  all 
coke  accounts  are  charged  to  coke;  one-third  of  the  amount 
expended  for  salaries,  general  expenses,  and  blacksmith- 
ieg;  one-half  of  the  amount  expended  for  insurance,  haul- 
ing water,  and  waterworks;  and  two-thirds  of  the  anion 'it 
expended  for  building  and  machinery,  repairs  and  machin- 
ery. These  amounts,  as  a  whole,  come  within  a  fraction 
of  amounting  to  42  per  cent  of  the  entire  cost  of  expendi- 
tures, leaving  58  per  cent  to  be  charged  against  the  cost  of 
coal.  This  is  the  same  rule  as  that  applied  by  the  man- 
agement of  ,the  mines,  except  that  the  moneys  expended 
for  machinery  and  waterworks  were  not  treated  as  a  charge 
against  the  earnings  of  either  coal  or  coke. 

This  statement  also  shows  that  the  average  sale  price  for 
coke  for  the  two  years  was  $2.15  per  ton,  while  the  average 
cost  price  was  $1.07;  the  average  sale  price  for  coal  was 
78  cents  per  ton,  while  the  average  cost  price  was  49  cents 
per  ton. 

Statement  "B"  shows  total  coal  production,  total  gross 
sales  (including  amount  charged  to  coke),  tons  and 
amounts,  errors  in  invoices,  differences  in  weights,  etc., 
allowed,  and  net  sales  as  shown  in  Statement  "A." 


—  31  — 
It  will  be  observed  from  this  statement  that  the 

Gross  sales  of  coal  for  the  two  j'ears  amounted  to $244,635  87 

Add  errors  in  invoices,  etc.,  and  local  sales L,95S  23 

Add  anion nt  to  coke  ovens 60,725  53 


Total    $307,319  6:i 

I..  3S  errors  in  invoices,  difference  in  weights,  etc .1,770  31 


Total  net  coal  credits $303,549  32 

Less  invoice.  December  1,  1898,  coal  on  hand 192   ST 


Balance   $303,356    15 

Add  invoice,  December  1,  1900,  coal  on  hand Is   25 


Total  gross  earnings,  coal,  two  years $303,374  To 

Total  tons  on  hand,  December  1,  1898 753  70 

Total  output,  tons  486,513   55 


T  >tal    187,267  25 

Tons  coked 180,01 

Tons  sold  307,221   35— 4S7  226  35 


s  on  hand,  December  1.  L900 40  90 

Statement  "('  '  -hows  total  coke  production,  gross  saijes 
in  ton-  and  amounts,  errors  in  invoices,  differences  in 
weights  allowed,  and  net  sales  from  December  1,  1898,  to 
December  1,  1900. 


This  statement  shows 


■> 


i'l.il'ji    -     sales  of  coke  to  be $224,915  68 

Add  errors  in  invoices,  etc 2,001   52 


Tola!  gross  sales  $226,91 ;   20 

Less  errors,  etc.,  and  difference  in  weights 

allowed 4,225   15 

Total  net  sales  $222,692  05 

I.-  -   invoice,  December  L,  1S98 $      222  02 

Less  cos1  of  coal  coked 60,725  53 

Total  deductions  60.941 


\et  sales  to  credil  of  coke,  two  years $161,74-4  50 

Add  invoice,  December  l.  L900 1,843  44 


I    tal  gross  earnings,  two  years,  from 
coke $163,587  9-1 


—  32  — 

which  amount,  with  difference  in  invoices  deducted,  leaves 
$161,966.52,  as  given  in  Statement  "A." 

Tons  coke  on  hand.  December  1,  1898 303  80 

Tons  coke  production,  two  years 104,499  30 

Total    104,803  10 

Tons  sold 103,002   70 

Tons  on  hand,  December  1,  1900 1,200  40 

This  statement  also  shows  the  average  amount  of  coke 
that  each  ton  of  coal  will  produce  for  each  month,  the  aver- 
age for  the  two  years  being  42  per  cent.  The  $4,225.15 
charged  against  the  gross  sales  of  coke  is  practically  all  on 
account  of  claims  made  by  the  Dayton  Coal  and  Iron  Com- 
pany and  the  Citico  Furnace  Company  for  differences  in 
the  weights  of  coke  at  the  State  mines  and  their  own. 
The  charges  on  coal  account  for  same  purposes  for  the  two 
years  amount  to  only  $3,820.69,  although  twice  the  amount 
of  coal  was  shipped.  In  arriving  at  the  net  earnings  from 
coke,  the  operating  expenses  of  coke  and  that  part  of  the 
cost  of  coal  added  constitutes  the  charge  against  the  net 
sales  of  coke;  and  for  eoial,  coal  operating  expenses,  less  that 
charged  to  coke  for  coal,  constitutes  the  charge  against:  the 
net  sales  of  coal,  not  including  that  charged  to  coke. 

Statements  "D"  and  "E"  show  total  expenditures,  by 
months  and  accounts,  from  December  1,  1S98,  to  December 
1,  1900. 

December  1,  1898,  to  December  1,  1899 $114,681  60 

December  1,  1899,  to  December  1,  1900 146,810  87 

Total,  two  years $261, 49S  47 

This  is  an  itemized  statement  of  expenditures,  by  months 
and  accounts,  of  the  total  expenditures  reported  in  State- 
ment "AA." 

Statement  "F"  shows  the  cash  receipts,  by  months  and 
account®,  except  that  the  receipts'  from  coal  and  coke'  are 


—  33  — 

given  as  a  whole,  there  being  no  way  in  which  they  could 
be  divided. 

December  l.  1898,  to  December  1,  1899 $176,735  68 

December  1,  1S99,  to  December  1,  1900 279,957  2] 

Total,  two  years  $456,692  89 

Statement  "Q"  shows  total  expenditures  for  labor,  total 
amounts  paid  for  same  in  coal,  rents,  etc.,  included  in  state- 
ment of  earnings,  and  net  amount  collected  from  the  State 
of  Tennessee  by  voucher. 

Total,  December  I,  1s'.»>.  to  December  1,  L899 $32,977  24 

Total,  December  1.  1899,  to  December  1.   1900 36,901  63 

Total,  two  years   $69, SSI  87 

Less  stoppages,  rents,  etc 2,544  39 

Net  amount  collected  from  State $67,336  9S 

Statement  "II"  shows  price  paid  per  ton  for  coal  and 
O  !-.«•.  by  months,  from  December  1,  18!'>s,  to  December  1, 
L900,  the  object  being  to  show  the  price  per  ton  paid  by 
regular  coal  and  coke  contractors  and  the  regular  market 
price. 

Statement  "J"  shows  Accounts  Receivable,  December  1, 
1900.      Total  am. Mint.  $44,755.17. 

Statement  "•/ '"  shows  Bills  Receivable  and  Accounts 
Payable,  December  1,  L900. 

Bills  Receivable   $10,811   >; 

Accounts  Payable   8  22 

Statement  " l\"  show-  name-  of  employees  and  salaries    _/ 
paid  for  month  of  November,  1  !•<)(),  the  pay  roll  amounting 
to  $3,420.83. 

Statement  "L"  shows  amounts  paid  for  freighl  bo  II.  L. 
Cory,  cashier,  an  materia]  and  supplies  received  from  De 
cember  I,  lv'-lv.  to  December  !,  1900,  by  months.  TotaJ, 
$]  L019.10. 


—  34  — 

Statements  "M"  and  "N"  show  total  amount  drawn 
from  the  State  Treasury,  by  months  and  accounts,  by 
voucher,  from  December  1,  1808,  to  December  1,  1900. 

December  1,  1898,  to  Dec-ember  1,  1899 $115,217  74 

December  1,  1899,  to  December  1,  1000 144,916  87 

Total,  two  years  $260,134  61 

This  is  $1,372.08  less  than  the  amount  expended. 

Statement  "0"  shows  total  amount  expended  for  labor 

and  the  distribution  of  the  cost  of  same  to  coal  and  coke 

operating"  accounts. 

December  1,  189S,  to  December  1,  1800 $32,97  7  24 

December  1,  1800,  to  December  1.  1000 36,904  03 

Total,  two   veins $69,881  S7 

Statement  "P"  shows  total  amount  expended  for  feed- 
ing, clothing;,  guarding,  and  other  maintenance  accounts, 
and  the  distribution  of  the  cost  off  same  to  coal  and  coke 
operating  accounts. 

December  1,  1898,  to  December  1,  1809 $  48,950  HO 

December  1,  1809,  to  December  1,  1000 57. 131  41 

Total,  two  years $106,081  77 

Statement  "Q"  shows  amounts  comprising  the  total  ex- 
penditures for  maintenance,  distributed  as  stated  in  States 
merit  lt  P."     Total  amount  for  two  years,  $106,081.77. 

•Statement  "B,"  shows  total  amount  expended  for  timber 
and  ties,  which  is  distributed  to  coal  and  coke  operating 
accounts.     Total  for  1899,  $1,379.92. 

Statement  "S"  shows  total  amount  expended  for  carpen- 
tering, and  the  distribution  of  the  same  to  coal  and  coke 
oper a  ti n g  a ccou nts . 

December  1.  1898,  to  December  1,  1899 $1,724  93 

December  1,  1899,  to  December  1,  10(H) 1,815  45 

Total,  two  years $3,540   38 


—  35  — 

Statement  "'/"  shows  total  amount  expended  for  team 
account  expense®,  and  its  distribution  to  coal  and  coke 
operating  accounts. 

December  1,  1898,  to  December  1.  1899 $  6,095  36 

December  l.  1899,  to  December  1,  1900 9,232  ';: 


:al.  two  years   , $15,327  63 

Statement   "I       shows   total   amount  of  supplies   eon 
slimed,  and  the  distribution  of  their  cost  to  coal  and  coke 

operating  accounts. 

December  1,  1898,  to  December  1.  1899 $37,042  99 

De     mber  1,  1899,  to  December  1,  1900 49,625  12 


Total,  two  years  $86,668   11 

Statements  "M,"  "N,"  "0,"  "P,"  "Q,"  "R,"  "S"  "T" 
an  I  "!  '  represent  the  distribution  of  the  voucher  record, 
amounts  expended  for  labor,  supplies  consumed,  mainte- 
nance, carpentering,  timber  and  tics,  and  team  expenses, 
t<  the  various  coal  and  coke  operating  accounts  consti- 
t  in  ing  the  total  expenditures  of  the  mine.-  for  the  two  years, 
as  given  in  Statements  "  D"  and  "  E."  For  instance, 
Statement  "  E  "  show-  total  expended  for  building  and  ma- 
chinery repairs. 

ember  1,  1899,  to  December  I,  1900 $6,779  93 

-  comes  fr<  m   i  in    distributj  n    ot  the  fol- 
j    «  ing  account  s: 

Team  Account,  Statemenl  '*  T  " $        •"  50 

.Maintenance  Account,  Statement  "  I'"....  122  :il 

(  ;i  1 1  .  ntering  Account,  Statem<  nt  "  S  ". . . .  151   67 

-    !>]il\    Account.  State nt  "  U  " L.526  02 

I.-, i  ■  ,    Account,  Statemenl  "  (.»  " 1,070  25 

Vouch'           ord,  Statemenl  "'  N  " 3,598   is 


-\ 


I'otal   $6,779  93 

This  same  tide  applies  to  all  oth  r  accounts  included  in 

table  of  expenditur  *,  and  checks  with  the  I k>  at  the 

mines,  except  in  one  op  two  instances,  when   there  is  some 
.  rossentrv on  the  boo]  -.  :r<  litina  one  accounl  and  charging 


—  36  — 

another,  which  outs  no  figure  in  the  totals.  In  this  account 
$27.00  is  not  checked,  for  the  reason  that  it  was  for  some 
old  brick  used  from  Bi-Pioduet  of  coke  operations,  and  ha  1 
already  been  charged  to  that  account  and  paid  for;  there- 
fore, to  again  charge  it  here  would  constitute  a  double 
charge  for  the  same  expenditure. 

Statements  "V"  and  "  W"  show  the  total  number  of  con- 
victs in  prison,  average  per  working  day.  and  how  they  wer  • 
worked  each  working  day  from  December  1,  1898,  to  De- 
cember 1,  1900. 

December  1,  1898,  in  December  1.  1899: 

Total  days 173,515 

To1  :tl  days  cooking1,  hospital,  etc 24,977 

Total  days  working 148,5 

Number  of  working  days  in  the  year -;1  ■ 

Average  number  of  convicts  in  prison  each  working  day  551 

December  1.  1899,  to  December  1,  1900: 

Total  days 191,20 i 

Total  days  cooking,  hospital,  etc 22,239 

Total  days  working 168,968 

Numbei  of  working  days  in  the  year :;I" 

Average  number  of  convicts  in  prison  each  working  day  61 1 

Number  of  convicts  in  prison,  December  1,  1000 G'M 

- 

EXPEXDITUEES. 

The  statement^  of  expenditures,  both  as  a  whole  and  by 
months,  arc  the  amounts  shown  to  have  been  expended  by 
the  books  of  the  mines.  These  expenditures  are  all  treated 
as  a  charge  against  the  earnings  of  coal  and  coke,  for  the 
reason  that  other  coal  companies,  railroad  company,  manu- 
facturing company,  and  every  other  gigantic  enterprise, 
after  bavin-  been  constructed,  equipped,  and  turned  ovei 
to  its  operators,  charges  to.  and  pays  out  of,  its  gross  earn- 
ings all  cost  of  operations,  including  new  or  additional 
construction,  improvements,  and  equipments  (including 
the  replacing  of  old  machinery  with  new)  rendered  neces- 
sarv  bv  increased  business  or  by  natural  wear  and  tear. 


—  37  — 

To  do  otherwise  would  compel  the  management  to  ask  an- 
nually for  mi  increase  of  the  capital  stock  of  the  companv 
to  pay  for  such  "betterments"  as  it  might  choose  to  ex- 
clude from  its  operating!  accounts,  which  n<  one  with  any 
business  sagacity  whatever,  having  any  int<  resl  in  the  con 
tinuation  of  the  existing  management,  would  dare  do; 
The  report-  of  the  management  of  the  mines  from  month 
to  month  or  the  report  of  the  Commissioners  to  the  Gov- 
ernoi  do  not  give  a  clear,  frank  statement  of  its  opera- 
tions. It  simply  charges  coal  and  coke  with  such  amounts 
as  its  management  sees  fi.1  to  term  "operating  accounts," 
omitting  as  a  part  of  the  cost  thereof  an  amount  which  is 
termed  "  betterments."  These  expenditures  for  "  better- 
ments "  amount  to  about  $60,000.00  for  the  two  years,  and 
in  the  trial  balance  are  added  to  the  amounts  heretofore 
expended  on  those  accounts,  thereby  preventing  its  detec- 
tion, unless  the  trial  balance  for  the  previous  year,  month. 
oi  i  thei  period  embraced  was  at  hand.  In  other  words,  no 
on<  can  take  the  trial  balance  of  the  mines  for  the  year  1  s'.,s 
or  Hi;  year  L899  alone  and  tell  what  has  keen  expended  by 
the  mine-  for  that  year  withoul  the  trial  balance  for  the 
year  previous.  If  the  Mast  Tennessee  Commissioner  did 
not  know  these  fact-,  having  this  department  in  special 
charge,  he  should  have  known  ihem;  and  whatever  may 
havt  l- on  the  rea-on  for  not  including  all  expenditures  of 
the  mine-  a-  a  charge  against  coal  and  coke  from  month  t  i 
month,  it  ha-  had  the  effect  of  depriving  the  (  'oiiinkssioiner- 
a1  Xa-hville  nf  intelligent  action  in  the  consideration  od 
coal  and  coke  contract-,  who  in  all  probability,  had  they 
!  1 1  n  in  |)o--i  --imi  of  all  the  facts,  would  have  insisted  upon 
higher  prices  being  paid  for  coal  and  coke  than  those  ob 
taim  d. 

PAY  ROL1  . 

Upon  examination  of  the  distribution  of  labor  account, 
it  will  be  seen  thai  the  sum  of  $69,881.87  ha-  been  &x-. 
pencled  for  the  two  years,  while  the  voucher  record  show-- 


—  38  — 

only  $67,336.98  to  have  been  expended.  The  difference. 
$2,544.89,  is  an  amount  paid  in  rent:-,  board,  supplies, 
etc.,  and  not,  vouehered.  This  is  in  direct  conflict  with 
the  law  requiring  all  cost  of  prison  operations  to  be  drawn 
from  the  State  Treasury,  and  the  payment  into  the  Treas- 
ury of  all  moneys  collected.  This  same  practice  has  been 
indulged  in  with  Mr.  Wiser,  who  has  charge  of  the  Deep 
Well  operations,  in  the  wav  of  supplies,  etc..  being  de- 
ducted from  his  voucher,  which  is  also  contrary  to  law. 
These  and  all  similar  practices,  if  any  there  be,  should  be 
discontinued  at  once. 

ELECTRIC  HAULAGE  PLANT. 

Upon  reference  to  Statement  "  E,"  showing  the  expendi- 
tures, by  months  and  accounts,  from  December  1,  1899,  to 
!  December  1,  1900,  it  will  be  observed  that  the  electric  haul- 
age plant  was  placed  in  the  mines  in  June,  1900,  at  an  ex- 
pense in  the  aggregate  of  $13,650.59.  Whatever  might  be 
the  good  results  to  be  accomplished  by  this  plant  in  the 
future,  it  certainly  has  boon  the  cause  of  a  loss  to  the  State 
for  the  first  six  months'  operations.  By  reference  to  Ta- 
bles "  E  "  and  "  C,"  giving  the  coal  and  coke  production  by 
months,  it  will  he  seen  that  for  the  first  six  months  after 
being  installed  the  production  of  coal  was  26,949  tons  less 
than  for  the  six  months  previous,  which,  at  the  average 
price  of  96  cents  per  ton  obtained,  amounts  to  $25,871.04; 
and  that  the  production  of  coke  was  6,937.95  tons  less  than 
for  the  preceding  six  months,  which,  at  $2.83,  the  average 
price  obtained  per  ton,  amounts  to  $19,634.98,  making  a 
total  difference  to  the  State  on  that  account  of  $45,505.43. 

DEEP  WELL. 

By  reference  to  the  waterworks  account  in  Statements 
"D"  and  "E,"  it  will  he  observed  that  $11,311.56  was 
expended  in  the  past  two  years  on  account  of  waterworks. 
The  bulk  of  this  expenditure   is  for  well  boring,  which 


—  39  — 

seems  to  have  been  rather  extensively  prosecuted.  I  under- 
stand that  these  well-boring  operations  up  to  December  1. 
1900,  haw  cost  the  State  the  sum  of  $13,770.59.  Of  this 
amount,  $5,237.58  is  the  cost  of  Well  No.  1,  which  was 
abandoned  in  Xovemher,  1809,  and  charged  off  to  Profit 
and.  Loss.  Well  No.  2,  uu  to  December  1.  1900,  was  about 
2,900  feet  deep,  and  cost  the  State  the  sum  of  $8,533.01. 
The  cost  of  hauling  water  from  December  1,  1898,  to 
December  1,  1900,  as  shown  by  these  statements,  was 
$985.75,  the  interest  upon  the  amount  expended  being 
nearly  sufficient,  at  the  rate  of  6  per  cent,  to  pay  for  it. 
I  knew  nothing  in  regard  to  the  object  sought  by  the  mine 
management  in  expending  so  much  money  for  boring  this 
will.  Imt  have  been  informed  that  pending  it-  operations 
the  genera]  manager,  who  has  since  resigned,  obtained  a 
large  number  of  leases  involving  mineral  rights  in  a  large 
number  of  tracts  of  land  near,  adjacent  to,  or  surrounding 
the  State's  mines.  These  leases.  I  am  informed,  were 
taken  in  the  name  of  himself  and  associates,  and  are  re- 
corded in  the  office  of  the  Register  of  Morgan  ( 'onntv.  As 
to  who  his  a-sociates  are,  I  do  not  know.  The  amount  of 
money  expended  for  this  well  would  pay  for  all  the  water 
needed  by  the  State,  at  the  rate  it  has  been  paying,  for 
twenty-six  years. 

GENERAL  MANAGER  AS  CASHIER  AXD 

TRUSTEE. 

There  is  a  custom  prevailing  at  the  mine-  for  the  gen 
era]  manager  to  issue  to  himself  vouchers  for  th  pay  roll, 
vouchers  for  freight,  and  vouchers  for  the  traveling  ex- 
penses of  bhe  Eas1  Tennessee  Commissioner ;  also  to  re 
serve  ou1  oif  the  pay  of  each  guard  $25.00,  which  he  keeps 
and  deposits  in  hank  as  "  Trustee,"  in  order  to  proted  the 
State  againsl  the  payment  of  any  reward  it  might  have  to 
pay  for  an  escaped  convict.  As  for  the  pay-roll  voucher, 
thai  can   be  conveniently  handled  only  in  thai   way;  Imt 


—40  — 

these  other  matters  add  complications  in  checking  the  books 
that  are  unnecessary.  Arrangements  could  be  easily  made 
with  the  bank  at  Harriman,  where  the  deposit  is  kept,  to 
advance  the  money,  if  necessary,  to  pay  the  freight  vouch- 
ers. As  to  the  expenses  of  the  East  Tennessee  Cbmmis? 
sioner,  if  he  is  entitled  to  any  expenses,  except  while  awav 
from  Nashville  or  the  mines  on  official  business,  he  could 
draw  his  own  voucher  in  his  own  name.  These  expenses, 
from  September  1,  1800,  to  December  1.  1000,  am  unt  t  i 
the  sum  of  $323.00.  The  State  could  be  made  the  trustee 
for  the  fund  reserved  out  of  the  guard's  salary  by  reserving 
the  $25.00  from  the  pay  roll.  When  the  guard  quits,  this 
amount  could  then  be  added  to  the  amount  due  and  paid. 

FREIGHT  RATES. 

In  checking  up  the  expenditures  my  attention  was  called 
to  the  large  amount  paid  for  freight  on  supplies  shipped  to 
and  from  the  mines,  By  referring  to  Statement  "  L,"  it 
will  be  seen  that  the  cost  of  freight  on  material  and  sup- 
plies received  at  the  mines  from  December  1,  1898,  to  De- 
cember 1,  1000,  amounted  to  $11,010.10.  The  rates  are 
in  some  instances  very  excessive,  and  particularly  is  this 
true  in  the  case  of  the  Harriman  and  Northeastern  Rail- 
road Company.  From  the  best  information  I  can  get  in 
dissecting  the  freight  bills-,  the  Harriman  and  Northeast- 
ern Railroad,  running  from  Harriman  to  the  mines  (twen- 
ty miles),  received  of  the  total  amount  paid  the  sum  of 
$2,709.37  for  the  year  ending  December  1,  1900.  That 
road  also  received  $723. GO  from  the  State  on  account  of 
passenger  traffic  of  convicts  and  guards  for  the  same  period. 
I  understand  that  its  minimum  rate  per  ton  on  coal  and 
coke  shipped  from  the  mines  is  17.2  cents.  This  being- 
true,  the  revenue  derived  from  the  State's  mining  opera- 
tions and  accruing  to  said  road  for  the  year  ending  Decem- 
ber 1,  1900,  was  not  less  than  the  following  amounts: 


—  41  — 


Freight  on  supplies,  etc $  2,709  31 

Passenger  traffic 723  60 

(  oft]  and  coke.  199,510  to, is.  at  17.:.' 34,316  60 


T< :  i  a  I    $37,749  6G 

This  income,  capitalized  at  6  per  cent,  represents  a  valu- 
ation <•]  $641,833.00,  which  is  much  more  than  the  road 
i-  at  presenl  bonded  for.  It  charges  the  State  35  cents 
per  ton  for  coal  and  coke  hilled  to  Harriman,  while  it 
charges  17.2  cents,  or  a  fraction  over,  for  coal  hilled  be- 
yond Harriman.  1  understand,  also,  that  it  charges  the 
Crooked  Fork  Coal  Company,  also  situated  at  Petros,  only 
30  cents  per  ton  for  coal  shipped  to  Harriman,  thereby  dis- 
criminating againsl  the  State  to  the  extent  of  5  cents  per 
ton.      The  rates  from  Petros  or  Brushy   Mountain  Mines 

•lie  following  points  are  as  follows: 

Atlanta,  Ga $1  30      per  ton. 

Rome,  Ga   ]  io 

Dalton,  Ga 1  in 

Macon,  G  a   1  ,:, 

Barnesville,  (i;t    1  75 

M'i  Let  ta,  Ga  l  30 

Acworth,  Ga  1  30 

Aiiioisia.  Ga    2  05 

Savannah,  Ga   1  95 

Chattanoog-a,  Tenn 65 


akfort,   K\-   1   25 

Runtsville,  Ala 1  20 

Florence,  Ala   1  4."> 

Harriman,  Tenn   

Oakdale,  Trim   L7.7 

Dayton,  Tenn  50 

Nashville,  Tenn  l  65 


There  is  practically  none  of  the  State's  coal  sold  at  Nash 
ville  owing  to  prohibitory  freight  rate-.      1 1'  the  State  co  1  I 
get  a  rate  of  $l.'»o  per  ton,  to  Nashville,  the  same  as  the 
Kentucky  mines  get,  it  would  be  of  material  benefit  to  the 
State's  mining  operal  ions. 

The  ETarriman  and  Northeastern  Kailroad  is  honded  for 
$300,000.00.     It  was  aold  under  foreclosure  sale  in  July, 


\ 


—  42  — 

1895,  for  $200,000.00.,  but  was  afterwards,  restored  to  the 
holders  of  its  bonds.  The  road's  rate,  T  learn,  has  at  times 
in  the  past  been  10  cents  per  ton;  and  from  the  fact  that 
it  furnishes  no  cars  and  is  at  but  little  expense,  there  is  no 
reason  why  the  rate  should  not  be  10  cents  now. 

COAL  OUTPUT. 

Tbere  is  no  check  on  the  amount  or  the  number  of  tons  of 
coal  produced  at  the  mines.  Instead  of  the  output  of  the 
mines  being  the  basis  upon  which  other  calculations  are 
made,  it  is  arrived  at  by  adding  the  amount  on  hand  at  tbe 
end  of  the  month  to  the  number  of  tons  sold  and  the  num- 
ber of  tons  coked,  and  subtracting  from  these  totals  tbe 
amount  on  hand  at  the  end  of  the  month  previous. 

COAL  AND  COKE  CONTRACTS. 

Tabulated  Statement  "  H  "  contains  the  names  of  the 
larger  contractors  for  coal  and  coke  and  the  prices  per  ton, 
as  well  as  the  names  and  prices  per  ton  of  some  other  pur- 
chasers buying  in  smaller  quantities,  presumably  at  the 
market  price.  R.  O.  Campbell,  George  P.  Howard,  R.  W. 
Graves,  and  the  Fulton  Bag  and  Cotton  Mills  consumed 
the  bulk  of  the  coal  output  sold  ;  while  the  Dayton  Coal 
and  Iron  Company  and  the  Oitico.  Furnace  Company  prac- 
tically consumed  the  entire,  coke  output  from  December  1, 
1898,  to  February  1,  1900.  After  that  date  the  Alabama 
Consolidated  Coal  and  Iron  Railroad  Company,  the  North 
Alabama  Coal  and  Iron  Company,  the  United  States  Oast 
Iron  Company,  and  the  Chattanooga  Furnace  Company 
consumed  the  bulk  of  the  coke  output. 

COAL. 

By  comparing  the  prices  paid  for  coal,  as  shown  in  this 
statement,  by  George  P.  Howard,  R.  W.  Graves,  and  the 
Fulton  Ba,g  and  Cotton  Mills,  with  Statement  "  B,"  show- 
ing the  average  price  per  ton  obtained  by  the  State,  by 


—  43  — 

months,  ir  will  i>  i  bserved  that  while  at  the  date-  o  \  which 
their  contracts  were  made  the  parices  agreed  to  be  paid 
seemed  reasonable,  at  the  same  time  during  the  existence 
of  thes  ■  contracts  they  obtained  coa]  for  a  much  less  sum 
than  the  average  prices  obtained  by  the  State.  From 
April  1.  L899,  to  April  1.  L900,  R.  W.  Craves  and  the 
Fulton  Bag  and  Cotton  Mills  paid  65  cent-  per  ton,  while 
George  P.  Howard  paid  66  cents  per  ton.  The  average 
price-  per  roii  received  by  the  State  for  those  months  wen 
as  follows : 

April.   1899    56  cents. 

May,     -        til)  " 

June,  L899 59  " 

July.   1899   61  " 

August,    L899    67  " 

mber,   1899   71  " 

October,   L899  76  " 

X   rember,  1899 80  " 

December,    L899 S7  " 

.January.    L900    98  " 

lary,    L900   92  " 

March,   1900   91  " 

COKE. 

CONTRACT  of  DAYTON  COAL  AND  IRON  COMPANY. 

Tin  first  contracl  with  this  company  begins  March  1, 
1898,  and  expires  March  1,  1899.  It  calls  for  1,500  tons 
of  forty~eight-hour  furnace  coke  per  month,  of  2,000 
p  mid-  each,  at  the  rate  of  '$1.2.')  per  ton.  \o<  be  weighed 
upon  the  Commissioner's  scales  al  the  mines.  If  these 
weights  are  found  to  be  incorrecl  by  the  weighing  of  the 
scales  of  the  company  at  Dayton,  Tenn..  the  -mne  is  to  be 
'••  erected  in  monthly  statements.  The  company  had  the 
ion  to  extend,  and  did  extend,  this  contract,  at,  its  expi- 
ration on  March  L,  L899,  to  March  1.  1900,  except  thai  the 
rate  p<  r  ton  to  be  paid  to  the  State  was  based  upon  the  mar 
kel  price  i  '  \'<>.  '■'>  foundry  pip  iron.  The  bas  p  Lee  for 
shall  be  $1.25  per  ton,  and  the  base  price  for  No.  3 


—  44  — 

foundry  pig  iron  $7.50  per  ton.  When  the  average  price  for 
No.  3  foundry  pig  iron  for  any  one  month  shall  be  50  cants 
per  ton  more  at  the  furnace  of  the  company  than  the  base 
price  herein  named,  the  price  of  coke  is  to  b .■*  advanced  the 
sum  of  4  cents  per  ton,.  In  order  to  arrive  at  the  facts  as 
to  Xo>.  3  foundry  pig  iron  at  the  furnace,  the  president  of 
the  company  is  required  to  furnish  on  honor  and  in  confi- 
dence to  the  manager  of  the  mines  a  statement  of  the  price 
obtained  for  said  grade  of  iron  each  month.  A  second  con- 
tract calling  for  1,500  tons  of  coke  more  per  month,  was 
made  December  22,  1898,  upon  the  same  basis  as  the  first, 
together  with  its  extensions,  except  that  the  base  price  for 
coke  was  $1.35  per  ton  instead  of  $1.25  per  ton.  If  strikes 
or  other  causes  compel  the  stoppage  of  one  or  both  furnaces, 
the  deliveries  are  to  be  suspended  upon  notice  given  bv  the 
company,  and  continue  during  the  period  of  interruption 
of  operations,  but  upon  removal  of  the  cause  the  deliveries 
of  coke  are  to  be  resumed. 

CONTRACT  OF  CITICO  FURNACE  COMPANY,  CHATTANOOGA. 

This  contract  provides  for  the  purchase  of  not  less  than 
480  nor  more  than  600  tons  of  furnace  coke  per  week,  at 
the  rate  of  $1.25  per  ton  of  2,000  pounds.  It  bears  date 
of  January  1,  1898,  and  expired  January  1,  1899.  Op- 
tion to  renew  for  one  year  from  January  1,  1899,  to  Janu- 
ary 1,  1900,  was  given,  and  the  contract,  was  renewed  upon 
the  same  sliding  scale  based  upon  the  price  for  Xo.  3  foun- 
dry pig  iron,  as  provided  for  in  the  contract  with  the  Day- 
ton Coal  and  Iron  Company,  except  that  it  was  also  baaed 
upon  the  freight  rate  of  55  cents  per  ton  from  Petros  to 
Chattanooga,  Team.  In  the  event  this  rate  was  advanced, 
the  price  to  be  paid  for  coke  should  be  reduced  not  exceed- 
ing 5  cents  per  ton.  In  the.  event  the  furnace  company 
shall  be  shut  down,  the  company  shall  not  be  obligated  to 
receive,  said  coke.  There  is  no  provision  in  this  contract 
in  regard  to  correction  of  weights. 


Jc 


—  45  — 


The  price  per  ton  charged  upon  the  books  of  the  mines 
was  $1.25,  and  at  the  end  of  each  month  a  sufficient  amount 
was  charged  to  these  accounts  to  make  the  rate  as  I  have  re 
ported  it  in  Statement  "  BE,"  and  the  amounts  added  upon 
the  Ledger  by  journal  entry.  I  had  no  authority  to  inves 
tigate  the  books  of  the  Dayton  Coal  and  Iron  Company  or 
tlic  Oitico  Furnace  Company;  therefore,  I  cannot  tell 
whether  the  average  prices  reported  to  have  been  obtained 
by  them  for  No.  '■'>  foundry  pig  iron,  on  honor  and  in  confi- 
.  to  the  manager  of  the  mines,  were  correel  or  not. 
These  extra  or  additional  charges,  with  the  total  amount, 
are  as  follows: 

April.    1899    $    599  30 

May.  1  >'.»:j 225  59 

.luin  .  1899   2   6  60 

July,  1899 506  75 

August,  1899 840 

September,   1899   610  82 

October.  1899  658  " _ 

November,  L899  1,262  s? 

Januarj  .    L900   297  71 

V>  bruary,    1900   '  90 

March,  1900 265  38 

Total $5,837  00 

A  large  amount  of  this  increase  in  price  per  ton  was  off- 
set by  shortages  in  weights  claimed  and  allowed,  as  shown 
in  statement  "  C,"  as  a  reduction  against  the  gr  -  sales 
of  coke  In  Mav.  L900,  a  claim  of  $2,467.84  againsl  the 
Citico  Furnace  Company  was  compromised  for  the  sum  od 
$  1:67.8  I.'"'  Taken  as  a  whole,  the  Stale  received  but  little, 
if  any,  benefit,  so  fax  as  these  contracts  arc  concerned,  upon 
the  phenomena]  increase  of  the  price  of  pig  iron  from  $7.50 
per  ton  to  aboul  $18.50  per  ton  during  their  existence. 
While  the  Stale  has  made  a  greai  deal  of  money  upon  coke 
for  the  past  two  years,  it  would  have  made  at  least  75  cents 
per  ton,  or  aboul  $50,625.00  mure,  had  these  contracts 
never  existed.     In  the  evenl  coke  bad  gone  down,  these  com 

♦  This  may  i»-  intended  foi    J2.000.00.    Original   memorandum  broughl    from 
mini 


A 


—  46  — 

panics  could  have  declined  to  receive  it  and  could  have 
escaped  liability  therefrom  under  these  contracts  by  simply 
suspending  operations  at  one  of  their  furnaces.  The  Ala- 
bama Consolidated  ( !oal  and  Iron  Company  had  a  contract- 
dated  March  16,  1900,  and  expiring-  "December  31,  1900, 
calling  for  four  cars  of  coke  daily  at  $3.40.  When  coke 
went  down  about  September  1,  last,  I  understand  that  they 
suspended  operations  and  quit  taking  it.  Under  these  con- 
tracts the  companies  had  no  chance  to  lose. 

BOOKS. 

The  books  of  the  mines  are  well  kept.  Statement's 
-  M  "  and  "  X  "  show  upon  what  accounts  th  ■  moneys  are 
drawn  from  the  State  Treasury,  by  months  and  accounts; 
while  Statements  "AA,"  "  D,"  and  "  E  "  show  the  various 
mine  operating  accounts  upon  which  they  were  expended. 
This  is  done  by  a  system  of  distribution,  and  it  is  very  in- 
teresting to  check  up  the  work.  There  should,  however, 
be  a  check  at  the  Main  Prison  upon  these  mines;  and  in 
order  that  that  may  be  done,  all  the  cost  for  supplies,  labor, 
maintenance,  timber  and  ties,  team  and  carpentering  ac- 
counts— which,  with  the  voucher  record,  compose  the  dis- 
tributive accounts — should  be  distributed  and  closed  at  the 
end  of  each  month.  These  amount-  should  then  be  bal- 
anced with  the  voucher  record,  and  their  report  should  so 
show.  These  amounts,  less  the  cash  receipts  for  board, 
miscellaneous  supplies,  etc.,  should  constitute  the  cost  of 
coal  and  coke,  distributed  in  the  manner  now  followed.  I 
can  see  that  the  treatment  of  all  supplies  purchased  as  con- 
sumed would  at  times  make  the  cost  price  of  coal  and  coke 
a  traction  more  than  it  otherwise  would  be,  but  that  is  far 
more  preferable  than  to  have  these  accounts  stan  ling  open 
and  their  cost  distributed  at  the  pleasure  of  the  manage- 
ment. 

Every  entry  upon  the  books  from  December  1,  1898,  to 
December  1,  1900,  has  been  checked,  except  the  postings  of 


—  47  — 

the  sales  ledger  to  individual  accounts.  To  do  this  proper- 
ly and  verify  the  charges  will  require  the  services  of  two 
men  for  thirteen  days,  working  ten  hours  peT  day.  This 
should  hi1  yet  done.  I  found  no  trace  of  the  investigating 
committee  of  two  years  ago,  so  far  as  the  hooks  arc  con- 
cerned, save  the  checking  of  the  cash-book. 

OUTST A  XI )  I N G  WARKANTS. 

The  following  arc  the  unpaid  or  outstanding  vouchers 
of  the  Stare  Prison,  except  such  as  were  issued  and  now 
held  by  individuals  prior  to  December  1,  1898: 

.MAIN    PRISON. 

1  >e<  i  ruber  l.  IS9S .  to  I  lecember  I,  L900: 
No. 
15546  Ellis  Harper  (held  for  settlement) *    165  21 

,0        V.  (  .  <£  St.  L.  i;.v.  Co 4  30 

i  W.  H.  Gammon,  Warden 82  92 

7177  Overton  &    Bush 5  00 

7259  J.  B.  Cage  (held  for  settlement) 45  85 

7565   T.  .1.   Mooney ~'T   34 

7671    I..  G.  Tate   108  55 

791  ;   John  Van   Range  Co 4  00 

$555   \Y.   II.  Hartford 18  28 

8579   Ross-Mayer  Manufacturing  Co .'!  77 

8619  Duncan  &  Co 14   7  8 

-   I..  II.  Hitchcock  53  SO 

8741    Vasliville  Si  reet   Railway  Co 04  ::u 

SflSO   K.  .1.  II.  Wail 14  17 

!  .1.  L.  Molt  4:;  72 

8821    W.   II.   Hart  lord    277    5] 

8815   Nashville  Street   Railway  Co 85  85 

8829    I'..    I'.   Ninon 1    75 

D.  C.  Scales  133   L5 

I..  (..    Tate 270   35 

Total    s   l-i:'1  '" 

i:i;l  SHI     MOUNT  \i\    PRISON. 

HELD   i:v    I  \ni  VI  i»i  ai.s. 

December  I,  1.898,  to  December  i.  L900: 

L0824  .1.  E.  (  ai  r  &    Son I  20 

12014   Nat.  J.  Scotl  I  ~; 

12115  J.  W.  Wells  &  Bro i  H  •'■ 


—  48—      • 

12177  Tennessee  Milling  Co 8  71 

12190  Chattanooga  Foundry  Co 24  00 

12228   Frank  Schurbert 24  69 

12238   A.  15.  Cooper 14  80 

12244  Mountain  City  Manufacturing -Co 15  20 

12247  Ross-Mehan   Foundry  Co 47  OS 

12257  Knoxville  Iron  Co 87  07 

12267  Lookout  Boiler  Manufacturing  Co 31  25 

12277  H.  &  N.  E,  Ry.  Co 160  05 

12283  E.  T.  Lumber  Manufacturing  Co 38  42 

L2288  Chattanooga  Car  &  Foundry  Co 92  4S 

12293  H.  L.  Cory  Co 399  50 

Total  held  by  individuals $  1,093  68 

IfELIi   BY    PKISQS    COMMISSIONERS. 

issued  prior  to  December  1,  1898: 
10478   Prison   Commissioners,  on   account  of 

farm  $    226  00 

10350  Prison  Commissioners,  on   account   of 

farm  247  10 

10-114  Prison   Commissioners,   on   account   of 

farm 123  90 

1592  Prison   Commissioners,  on   account  of 

farm 67  02 

1754  Prison   Commissioners,   on  account   of 

farm   440  25 

1791  Prison   Commissioners,   on   account  of 

farm   10  00 

1904  Prison   Commissioners,  on   account  of 

farm  48  60 

1942  Prison   Commissioners,   on   account  of 

farm  7   14 

10029  Prison   Commissioners,   on   account  of 

farm 37  10 

10056  Prison   Commissioners,   on   account   of 

farm 86  00 

10128  Prison   Commissioners,   on   account   of 

farm 84  20 

10472  Prison   Commissioners,  on   account   of 

manufacturing"  department    323  2S 

10143  Prison  Commissioners,  on   account  of 

manufacturing  department    550  00 

1792  Prison  Commissioners,  on   account   of 

manufacturing  department    769  25 

1261  Prison  Commissioners,   on   account  of 

manufacturing  department    7,841  69 


—  49  — 

10296  Prison  Commissioners,  on  aceounl    of 

manufacturing  department    915  35 

10177    Prison    Commissioners,    on    account    of 

manufacturing  department  144  00 

!   Prison   Commissioners,  on   aceounl   of 

manufacturing  departmenl    58  80 

10411   Prison   Commissioners,  <m   account   of 

manufacturing  departmenl    176  13 

l il    Prison   Commissioners,  on  account   of 

manufacturing  department   917  47 

Prison   Commissioners,  on   account   of 

manufacturing  department   182 

Commissioners,  on   aceounl   of 

manufacturing  department    i  L6  33 

Prison    Commissioners,    on    account    of 

manufacturing  department   342  60 

1728   Prison  Commissioners,  on   account   of 

manufacturing  department   20'.)  73 

i   Commissioners,  on   account  of 

manufacturing  departmenl    802  55 

1593   Prison   Commissioners,   on   account   of 

manufacturing  department    97  i  30 

1528   Prison   Commissioner--,  on   account  of 

manufacturing  departmenl    1,029  95 

1591    Pi  mmissioners,  on   account  of 

maintenance  of  convicts 68  59 

i    "      Pris    n   Commissioners,  on  aceounl   <>t' 

maintenance  of  convicts 12   77 

L73S   Prison   Commissioners,  on   aceounl   of 

maintenance  of  convicts 40  00 

Total   held    by    commissioners    is- 
sued prior  to  \)i-mu\n-\-  l.  1898.  .  -    1,252  37 

[ssned  from  December  I,  1898,  to  December  I,  1900: 

11534  Prisoi    <  missioi  ers,  i  a   aceounl    of 

ii. ai ntenance  $    103  U'.> 

1 171  l    Prison   Comi  i  rs,  on   account    oi 

maintenance 33   '.».'! —         137    62 

10545   Prisoi    Commissioners,  on  aceounl   of 

farm  "Is  01 

:   Prison  Commissioners,  on  aceounl   i  F 

farm  00 

L0964   Prison   Commissioners,  on  account   of 

tarn,    50 

11065  Prison   Commissioners,  on  aceounl   of 

inn  7670 


f 


—  50  — 

11216  Prison  Commissioners,  on   account  of 

farm  549  99 

11294  Prison  Commissioners,  on  account  of 

farm   SI  00 

11608  Prison  Commissioners,  on  account   of 

farm  76  15 

12070  Prison   Commissioners,  on  account  of 

farm   619  20 

Prison  Commissioners,  on  account  of 

f:mn 3  00-     1,69164 

I  Prison  Commissioners,  on  account  of 

1.      manufacturing'  department    553  45 

10546  Prison  Commissioners,  on  account  of 

manufacturing-  department   10,1  51 

10615  Prison   Commissioners,  on   account   of 

manufacturing-  department    230  20 

10682  Prison  Commissioners,  on  account   of 

manufacturing-  department   301  80 

1075S  Prison   Commissioners,  on  account  of 

manufacturing  department    1,234  00 

10S16  Prison   Commissioners,  on  account  of 

manufacturing  department   938  91 

10987  Prison   Commissioners,   on   account  of 

manufacturing-  department   626  52 

11064  Prison   Commissioners,  on   account  of 

manufacturing-  department   S29  45 

11124  Prison   Commissioners,  on  account  of 

manufacturing  department   406  00 

11282  Prison   Commissioners,  on  account   of 

manufacturing  department   955  10 

11381  Prison   Commissioners,  on  account  of 

manufacturing  department    471  45 

11444  Prison  Commissioners,  on  account  of 

manufacturing-  department    695  84 

11573  Prison  Commissioners,  on  account  of 

manufacturing-  department    701  10 

11063  Prison   Commissioners,  on   account  of 

manufacturing  department    368  60 

11704  Prison   Commissioners,  on  account   of 

manufacturing-  department    488  96 

11740  Prison   Commissioners,  on   account  of 

manufacturing  department   116  30 

11801  Prison   Commissioners,  on  account  of 

manufacturing  department    1,253  23 

11876  Prison   Commissioners,  on  account   of 

manufacturing  department   1,040  60 


—  51  — 

L19S3  Prison  Commissioners,  on   accounl   of 

nranufacfairing  department    

is    11   Commissioners,  on  accounl    of 

manufacturing  department    338   L5 

I  a  <  ommissionei  s,  on   accounl   of 

manufacturing  departmenl    182  Ti 

lllT'.t  Prison  CommissionerSj  on   accounl   od 

manufacturing  departmenl    786  70 

i    Prison  Commissioners,  on  accounl   of 

manufacturing  departmenl   ':'.'.  13  78 

Total  for  Brushy  Mountain 9  83 


Total  for  all  

Of  the  vouchers  outstanding  for  Brushy  Mountain,  $34,- 
876.15  are  in  the  hands  oi  the  Commissioners  and  held  by 
them.     The  effecl  of  their  withholding  these  vouchers  has 

.i  that  the  books  of  the  ( !omptroller  and  Treasurer  show 
1<--  expenditures  and  less  receipts  from  prison  operations 
than  really  exist.  These  vouchers,  under  their  sys 
tern  of  bo  eeping,  should  have  been  entered  upon  the 
cashbook  when  received,  the  proper  accounts  credited,  the 
Comptroller's  warrants  issued  therefor,  and  the  amount 
turned  into  the  State  Treasury  to  th<  credit  od  thi  Main 
Prison     They   were  never  entered  on   the  c.ashltook,  but 

ra  to  have  been  ere  lited,  nevertheless,  bo  the  accounts  of 
farm  and  manufacturing  department.  This  action 
places  tin-  books  of  the  .Main  Prison  oul  of  balance,  thciv- 
fore,  to  that  exti  nt.  For  the  pasl  two  years  these  vouchers 
amount  i"  $15,453.04,  which,  if  properly  credited  and 
stripped  from  whatever  fictitious  profits  exist,  would 
hav<    i  I  the  earnings  of  the  Main   Prison  probably 

$10,000.00.  I  know  nothing  aboul  their  being  beld  l>  the 
Commissioners  until  I  checked  up  the  vouchei  record  with 
the  record  of  payments  made  by  thi  State  Comptroller. 
The  position  occupied  !>\  tliese  vouchers  i-  the  -aim  a-  if 
iIk  State  Comptroller,  in  receiving  payable  warrants  with 
other  moneys  to  be  credited  to  thi  accounl  of  a  Clerk  or 
Trustee,  would  simply  pass  into  the  Treasury  the  cash  and 
withhold  the  warrant-,  and  then  credil  tin   accounl  od  the 


—  52  — 

Clerk  with  both.  Then  the  hooks  of  the  Treasurer  would 
show  that  the  Comptroller  had  not  passed  into  the  Treasury 
all  of  his  receipts  to  the  extent  of  these  warrants.  From 
the  fact  that  these  vouchers  are  sight  drafts  upon  the  State 
Treasury,  and  from  the  further  fact  that  they  were  not 
entered  on  the  cashbook,  thev  could  have  been  used  by  any 
one  having  access  to  them  without  detection,  unless,  per- 
haps, the  investigating  committee  would,  at  the  end  of  the 
two  years'  business,  check  them  ut>  with  the  record  in  the 
( fomptroller's  i  ffice.  These  vouchers  should  lie  taken  to 
the  Comptroller's  office,  pavable  warrants  issued  therefor, 
and  the  same  passed  into  the  Treasury  of  the  State,  in  order 
that  the  books  of  the  Treasurer  and  Comptroller  may  show 
the  State  Prison  operations,  as  required  by  law. 

coxcirsiox. 

In  conclusion.  I  will  state  that  in  this  investigation  I 
have  been  treated  with  kindness  and  courtesy  by  all  prison 
officials,  clerks,  and  employees,  and  have  been  materially 
assisted  by  Mr.  F.  M.  Johns,  of  Rutherford  County.  I 
have  been  thus  explicit  and  have  reported  in  such  detail 
with  the  hope  that  von  may  be  more  able  to  discharge  the 
intricate  duties  devolving  upon  you  in  connection  with  the 
State  Prison  and  its  management  with  that  degree  of  in- 
telligence its  importance  demands. 

Very  respectfully, 

J.  W.  ALLEN, 
Auditing  Accountant. 


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